What is Value based Pricing for SaaS?
Leading in from: [ How are companies pricing their SaaS today? ]
What is Value-Based Pricing for SaaS?
Instead of looking inside, Value Based Pricing looks at the inherent value of the solution to the customer. While this takes more dedicated effort to achieve, it could significantly improve the speed of adoption and retention of the solution in the long run.
In a Value Based approach, you see the value of the customer's needs and his perception of the value of the problem you solve.
Is this worth the dedicated effort?
Because, doing it the right way has demonstrated increases of over 16% in ARR
while 98% did not see any change in their customer base.
An average SaaS company spends 6 hours in its lifetime on pricing.
- Price Intelligently: The Anatomy of SaaS pricing
Want to do your pricing the right way? Get the latest DIY on 'Price your SaaS right'.
[ Download SaaS Pricing Whitepaper ]
See our earlier posts on the topic of SaaS pricing:
[ Why is SaaS pricing so important? ]
[ How are companies pricing their SaaS today? ]
I hope that you find this information as a conversation starter with your CXOs. If you would like to have a conversation on how you can achieve this for your organization or need assistance in sourcing good partners, we can be reached on connect[at]prequate.in.
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