🔆 SaaS Pricing Innovation 

Yesterday’s B2B SaaS CEO mastermind focused on SaaS Pricing Innovation. 

The CEO in the hot seat started, 

“We’re selling a cloud service to governmental agencies in the Health sector. They are allocating budgets per patient. So they’re already in this kind of patient subscription mindset but still have a horrible capital buying structure because they don’t want surprises.”

“My challenge is: how do we get them to think about subscription, but we structure a deal that looks like capital? At the same time, I want to figure out the levers to price so that adoption goes up and revenue goes up with usage, but not in a way that limits our land and expand growth opportunity.”

So, what’s at stake? we asked

“Leaving money on the table because we’re pricing on the wrong level or metric.”

Here’s the thing

Pricing can be a fantastic differentiator and, if used well, a lever for growth. Yet we often treat it as an afterthought. We’re not innovating pricing like we’re innovating our product.

But the same principles apply. It’s all about value perception. As such, pricing is like a feature of your product. 

So the way to go about it is: 

  • Understand what’s most valuable for your customer
  • Understand what’s most critical for your customer
  • And then understand how you can exceed expectations (with your pricing), so they want it now and keep wanting more.

So for this scenario, the route was not to price per clinician (user), but per patient visit for a specific service, they get (and sell that in packages).

This way, the pricing is

  • Directly tied to value delivered.
  • Perceived fair due to visible before/after relation.
  • Leaving no money on the table 
  • Incentivizing to increase transactions to drive savings.
  • Keeping future Land and expand opportunities open.

Key takeaway: Stop pricing your product based on how you structured it technically (users f.ex). Start pricing your product based on what they want and keep wanting more of it. What if it was a 10? What would that do to your SaaS business?

 


Question for you to reflect upon

On a scale of 1-10, how much incentive does your pricing model give your customers to want more?


 

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About the author

Sales Pitch

Ton Dobbe is a former B2B software product marketer who's on a mission to save mission-driven SaaS CEOs from the stress of 'not enough' traction. He's the author of The Remarkable Effect, the host of the Tech-Entrepreneur on a Mission podcast, and writes a daily newsletter on the secrets to mastering predictable traction.