Psychological facts about your consumers + advanced pricing page tips + real SaaS examples = your SaaS pricing page is ready to close! Let’s assume your SaaS pricing page is the final food you want to prepare and you have to use the right ingredients in the right way. Design, pricing strategy, the order of pricing plans and other elements are your ingredients. You can combine powerful design solutions and persuasive title with buyer-persona focused plans and don’t be surprised, your pricing page is all set to close more customers. So keep reading to discover how you can prepare the most “appetizing” SaaS pricing page.
The psychology of pricing is more relevant than you’d expect. The fact that some tricks have been used since cavemen drew $9.99 on walls, surprisingly, doesn’t make the tricks less effective today. So today we’ll recall what we know about the psychology of pricing, i.e. the forces that make people perceive the product as cheaper, better, or just make them feel that "the price is right".
Value-based pricing - one of SaaS’s most favorite (and sustainable) pricing schools of thought. Conventional wisdom says that if you tie the price you charge for your product to a value metric that aligns with your product, then you're set for success. However, can any value metric that aligns with your value give you a healthy revenue model? Or do the revolutionary revenue models of Michelin, Google, et al. possess something more? How does this play out in SaaS pricing? If the core value of your SaaS is intangible (like better team collaboration, increased productivity, etc.) how do you tie back your pricing to that value? This post aims to answer all these questions and more.
<p>Pricing is one of the original four Ps of Marketing. Your pricing model goes hand-in-hand with your growth engine. For example, if you plan to buy advertising to drive growth, you'll need a pricing model that generates a customer lifetime value that exceeds your customer acquisition cost. If, on the other hand, you are primarily driving growth through a viral invite system, you'll generally need a fairly low price to reduce purchase consideration friction in your customer acquisition funnel. Beyond supporting the growth engine, price is also a function of the value that customers receive from a product and the cost of alternative solutions.</p>
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