Introducing SaaS Pricing Plan Optimization: The data‑driven process we use to maximize profit
Published: August 2024
Many of the SaaS businesses we work with grapple with the following critical question:
“Are our plans and prices maximizing our profit?”
If yours aren’t, you’re likely leaving piles of money on the table. The good news (and the opportunity) is that almost everyone is struggling with this too.
The answer is to calculate your prospects’ willingness to pay for features and then optimize your tiers accordingly. But this requires a complex, scientific approach that has only been within reach of the biggest SaaS companies.
Until now.
Introducing SaaS Pricing Plan Optimization: The surefire way to maximize your profit (and help you sleep soundly while your pricing page works tirelessly all night).
No guesswork. No risk. And available to everyone—from startups to established SaaS giants.
How SaaS Pricing Plan Optimization works
Imagine a SaaS business with eleven core features spread across two pricing tiers.
SaaS Pricing Plan Optimization collects and analyzes thousands of data points from qualified prospects to calculate how much users value each individual feature.
Inspired by Japanese manufacturing’s Kano model, the process applies sophisticated statistical techniques to randomized sets of features and price points. Once the algorithm has analyzed the data, we know how many plans, which features should be included in each, and how much they should cost—an approach that would take hundreds of iterations if you were to try and guess-and-test your way to the optimum plans.
The process is low‑risk, high‑reward, and 100% guesswork‑free.
Once we know how much users are will pay for each feature, we reorganize the pricing page to maximize profit. We might find, for example, that offering a new entry tier would attract a whole new cohort of users.
But that’s not where this story ends
As you may have guessed, the example above isn’t just a hypothetical scenario; it’s a real-world optimization we ran for one of our SaaS clients.
And when we A/B tested the updated plans, the results were remarkable:
- +28% increase in transactions.
- +37% increase in revenue.
SaaS Pricing Plan Optimization delivered a huge win for our client, and it can do the same for you.
To learn more contact us. That’s what the client above did, and we’d like to thank them for generously letting us share the results they achieved.
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