#2: Hybrid/ multi-structure options
SaaS brands we work with are starting the experiment with billing structures that offer a hybrid approach between a pay-as-you-go (PAYG) and subscription billing. For example, you could offer a free, PAYG, hybrid and flexible subscription, and fixed subscription plans to customers.
The aim is simple: attract a wider market share and provide flexibility. Smaller customers or those with occasional product usage often prefer the PAYG method due to its pricing flexibility. On the other hand, larger customers value the predictability of fixed subscriptions.
Canva, for example, has a product-led billing motion, an in-app purchase option for assets, tiered plans for businesses and separate plans for schools and teachers.
Hubspot is another brand that offers multi-structure options from purchasing a full suite to creating your own bundle.
How do you know if your product bundling is working? Keep track your upfront net sales, product adoption rate and acquisition cost. By bundling relevant products as a package, you are positioning your product to offer more value per purchase to your customer and building brand loyalty through product adoption.
Sounds great in theory, but it's more complicated in practice. Tools and expertise are your greatest friends here. If you already have a billing platform that allows for flexible subscriptions, you're already off to a great start. However, if you don't have one, it's important to prioritize it early on. Otherwise, you'll end up dealing with a complicated billing system, making tasks like revenue reporting and recognition difficult and time-consuming.
As a first step, you’ll need a "discovery phase" to clearly understand your goals and KPIs. Think about your customers, their usage of your products and your product types to decide which of these fits best for you. Then think about your internal billing infrastructure and establish any gaps or needs you have. We work with brands everyday and have a proven process to do just this.