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.
SaaS stands for Software as a Service, a type of business model that sells access to software on a monthly basis rather than selling a license to software upfront. SaaS businesses charge a smaller monthly fee and make money by keeping customers over a long period of time, rather than collecting all the money for the software sale at the time of sale. SaaS business models have particular growth challenges including how to manage customer churn rates by improving customer retention, how to increase customer lifetime value, and how to best structure a sales and marketing team to fuel growth. These are the best articles on how to grow a SaaS business including how to reduce SaaS churn, how to build a SaaS customer success team, how to market a SaaS product, what net negative churn is and more.
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