Three-tier pricing strategy for SaaS is it the best? -
What's the most appropriate number of subscription tiers to an SaaS business?
Studies on research have shown that 3 is the most commonly used number, but do you think it's the greatest?
We didn't find that when we studied the pricing plans of fifty top-of-the-line SaaS companies to produce our 2022 pricing pages report.
We looked at the pricing pages of 50 companies in the top rated category on G2 and saw that the amount of annual or monthly plans offered varied from zero plans up to 23 plans.
From 0 to 23 options Top-of-the-line SaaS Companies Customize Their Subscription Choices
Their packaging also varied as much.
"Keep it simple" is the standard stipulation to SaaS companies regarding pricing and plans. But the options for subscriptions provided by the majority high-end companies aren't straightforward.
In this post we'll discuss how best-in-class SaaS companies sell and bundle their subscriptions and offer a wide range of tiered pricing models.
Three Tiers don't have to be a simple concept
Three-tier pricing strategies generally, we find:
- It's the best option for small groups, individuals users and new customers who want to try using this software.
- The middle is generally used for selling additional products. It's often highlighted as the "most desired" or "most cost-effective" choice.
- The premium-priced plan for those who require more.
This is true for the most prestigious companies with an underpinning three-tiered pricing system yet their method of pricing might not be as simple.
Prices change based on the number of users
As an example, Canva uses three tiers and alters the price of the tiers based on the amount of users.
Three primary plans to be an X-Point Off Point
Airbase has three major plans. Their unique option for bill payments leads customers to an entirely distinct set of plans. Customers can choose between volume pricing and value-based pricing. This can let potential buyers select the amount they'd prefer to pay for their purchase.
We believe that SaaS companies can begin using a simple three-tier system However, their pricing and their packaging must, as a result, get more complicated as their users have to adapt.
Four Is the New Three (But Five Is Popular Too)
Based on our research, the typical number of pricing plans is four. And there are a few most common methods for businesses that have four or five pricing options.
Three Primary Plans and an Enterprise Plan
What's the motivation behind this? The idea is to create middle plans which give smaller and medium-sized clients (i.e. those who are not enterprise customers) an ideal target to aim for.
Three Primary Plans as well as Two Enterprise Plans
Certain companies, such as Box have switched to five plans, including two business plans. So why shouldn't business users have alternatives too?
Free Plan and three Paid Options
If you're using a freemium model, then the four pricing options be an excellent idea. Paid customers will need space to grow into higher tiers.
Free Plan plus Four Paid Options
A different time is to keep in mind the fifth option lets your customers have more freedom to raise their rates. When adding additional tiers you must be clear what you will gain by moving to a higher price. This is due to TalentLMS differentiates based upon the quantity of customers.
Review the concept of an Idea
When we looked at pricing pages for the manual we found that it wasn't always clear what was classified as an annual or a monthly plan.
In this case, OneTrust Pro uses an A la carte approach to creating an annual program.
Like that, Datadog offers a wide number of plans that are based on many services they offer.
Instead of advertising tiers that come with fixed costs of a set price, Rippling is the only firm which creates customized plans.
The first indication that it's time to rethink a traditional tiered system is when you're getting feedback from prospective customers or clients who are paying for options or functions they aren't using. Another is when you're selling several products customers are currently paying in installments.
The top of the line SaaS companies think outside the box in terms of their pricing and their packaging. If you're having difficulty trying to create the tiered pricing structure you have Perhaps it's suitable time to to think outside of the box, too.
Create Plans (and/or Pages) for the occasion that You Target New Markets
An organization such as ButterCMS has a wide range of services from startups to enterprises. Every primary customer will have their own customized plan. If you're trying to sell to another customer, make sure you've got them in your pricing pages before you contact them or begin your marketing campaign.
Take a look at different tabs or pages to target specific Markets
36% of the businesses that we examined are able to provide tabs or price pages that have multiple prices, when they serve several market segments or have pricing plans for different products.
Tabs, like Mailchimp makes it possible to look at the whole price of a page, even though they're promoting three distinct products. Tabs make clear the distinction between their offerings.
HubSpot takes it one step further with two distinct tabs offering different options for services and plans, and one that offers bundles. There are times when scaling doesn't have to be all about moving to the next tier. If you're selling multiple product lines, is this the right time to combine the two?
What other ways are top-of-the-line companies Explaining Their Plans?
Best-in-class companies may use very diverse pricing structures, however, we discovered a number of popular methods to show the way they structure their pricing.
The most well-known pricing page features include:
- The FAQ Section (72 72 percent)
- Plans add-ons which mention the plan (42 percent)
- Most frequently-used plans are the one that is highlighted (36 percent)
What are you looking for in an Subscription Management solution?
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