A quick guide to pricing your SaaS offering
Pricing your SaaS offering can be a daunting process and a defining milestone for your startup. SaaS pricing should be well considered with a clear understanding of the target market segments and competitive environment.
Here are 10 things to consider when pricing your SaaS options.
Tiered Pricing – On your pricing page, layout your plans with the most expensive on the left and the least expensive on the right. People naturally read left to right and this order presents a stronger value proposition.
Prominent position – Your best value plan should be located in the middle and be highlighted so it is very visible.
Use Whole Dollars- Don’t use cents in SaaS pricing stick to whole dollar values, but if possible include a 9 in the price.
Provide Fewer Choices – 3 is a good number of options. If you provide too many choices it may create analysis paralysis, costing you a sale.
Create Scarcity – Providing time or volume-limited options creates an impression of scarcity and leads to FOMO (fear of missing out).
Show you care – Engaging with your community and discussing things other than the hard sell builds credibility and demonstrates reputation.
Frictionless Checkout – You want the purchase process to be as simple as possible any issues in the process could cost you a sale.
Discount Pricing – Small discounts such as trial periods or percentages off for the 1st month can be a great tool to get people hooked.
Simple Language - Don’t get caught up in jargon, all your text should be readable by anyone.
Testimonials – Provide testimonials and case studies to demonstrate social proof that your product works in the real world.
TAKEAWAY: These 10 tips should be checked off and thoroughly considered when developing and implementing your SaaS pricing and marketing strategy. Each of these elements may only contribute a small amount to your overall sales volume, but collectively they can determine success or failure.