The world of SaaS demands innovative packaging strategies to drive customer growth and satisfaction.
In this episode, our experts delve into two popular approaches: the Good-Better-Best model and category bundle packages. Discover the key factors that determine which strategy will work best for your business, considering your ideal customer's growth trajectory and feature usage patterns. With insightful comparisons, practical advice, and real-life examples, this episode will help you make informed decisions about the most effective SaaS packaging strategy for your unique offerings. Don't miss this essential guide to navigating the ever-evolving world of SaaS packaging!
Welcome to 20 days of pricing tips—part 9. I’m Brett, a member of the pricing team and I’ve worked on 41 pricing projects. Today we're breaking down SaaS Packaging.
You are probably already familiar with the “good better best” packaging strategy. You may have experienced this personally when buying a subscription online or even getting gas at the pump, but how do you know if this is the right packaging strategy for your business?
Good, Better, Best is arguably the most common packaging strategy in SaaS where a product is broken up into multiple distinct offerings based on different features or benefits that scale up in a tiered, good, better, best fashion.
Typically, this model works well when an ideal customer’s growth follows a clear trajectory which includes expanded feature usage.
But this is not always the best strategy. In some cases, category bundle packages may perform better when a product has deep functionality within specific categories (such as Salesforce) or role-based packages for products that serve a diverse assortment of use cases that have a very different willingness to pay (such as LinkedIn).
Ultimately, the right packaging strategy is going to come down to the type of product you’re selling and buyer preferences -be sure to consider this before defaulting to good better best!
Thanks for checking out our pricing tips. If you want to connect with our pricing team email Patrick@profitwell.com and we’ll send over the intro.