Three-tier Pricing Strategist for SaaS is the most efficient? -
What's the best number of subscriptions per month for the SaaS business?
Study After study found that 3 is the number which is most popular, but does it really hold any meaning?
This isn't what we discovered during our study of pricing practices of the top 50 SaaS companies to create our report on pricing pages for 2022.
We examined the pricing pages for fifty businesses that had the highest ratings for their services according to G2 and observed that the number of annual or monthly plans which were available varied between zero and 23 plans.
From No to 23 Plans Premium SaaS Companies Customize Their Subscription Choices
The packaging of their products is also distinct from one another in the same way.
"Keep things easy" is the standard advice given to SaaS businesses in regards to price of their plans and pricing. The options for subscriptions offered by the major companies that are high-end can be difficult to grasp.
In this blog, we'll explore the way top-of-the-line SaaS companies offer and bundle their subscriptions using a variety of pricing models that connect together.
Three Tiers does not have to be an elaborate plan
The three-tier pricing strategy in general, we observe:
- It is the cheapest choice for small groups, singles or customers who are new to using this service.
- The middle-tier can be used to sell upsells. The middle-tier is usually called the "most appreciated" or "most inexpensive" choice.
- Premium plans are designed for those who want to know more.
It's the case for top-of-the-line companies using a three-tiered pricing model however, the way they present the prices they charge isn't always straightforward.
Prices change based upon the volume of Customers
In this scenario, Canva uses three tiers and adjusts prices for each one based on the quantity of customers.
Three Primary Plan is the point of departure
Airbase advertises three primary levels however, their bill-pay plan will lead clients to a distinct set of plans. Customers are able to choose between prices based on volume or price-based. This gives buyers the option of choosing what price they want to pay for their purchase.
We believe that SaaS companies could start with a three-tier system, but their pricing and packages can become more complex because their clients demand changes.
The new trend is Four. (But Five is also well-known)
Based on our study found that the median number of options available is four. There are however many typical strategies that companies employ for having five or four pricing choices.
Three Primary Plans and an Enterprise Plan
The reason this approach is effective: It allows marketers to present a middle plan that gives those with a small or smaller size (i.e. those who don't have the capacity to be enterprise customers) this sweet spot pick between.
Three Primary Plans as well as Two Enterprise Plans
Some companies like Box are moving to five plans. This includes two levels for enterprise. Therefore, why should business customers not also have options?
Free Plan, with three paid Options
If you run a business upon a freemium service the four-price range may seem reasonable. Paying customers must be able to move up to higher amounts.
Free Plan as well as four paid options
A further reason to include five options gives your customers to grow. If you decide to include the additional options, ensure that you know are the benefits of moving towards the more expensive option. It is this because TalentLMS does not differ in the amount of users it serves.
The idea that lies behind the Plan
When we looked at the price pages in order to write the manual, it was not simple to decide what needed to be taken into account either as a month-to-month or an annual rate.
A good example is OneTrust Pro uses an on-demand method to create an annual program.
The same is true for Datadog. Datadog has a wide range of plans, based upon the numerous options provided by Datadog.
Instead of advertising tiers that come with fixed prices, and the tiers with fixed prices Rippling is the only business with a custom price. has plans with a custom price.
The best indicator of when it's time to reconsider a traditional tiered structure is when you're receiving feedback from customers or potential clients who have to pay for features or functions they don't use. A different sign is that you have a variety of products the current customers purchase at different times.
It's evident that the top SaaS companies think outside the box with regards to the pricing of their products and packages. If you're finding it difficult to develop your own tiered pricing model, maybe is the time to look at ways to exploring outside your boxtoo.
Plan and create Pages (and/or Pages) in the manner you Target New Markets
A company like ButterCMS offers a range of solutions ranging from start-ups up to enterprise. Each customer's primary is an individual who has the same strategy. If you're looking to promote to a different target market, make sure the desired market is included in your pricing pages before contacting them or starting your advertising campaign.
Explore different websites or tabs that you can use for Specific Markets
36% of companies which we studied have tabs, or multiple pricing pages for multiple different markets, or offer separate pricing plans for different items.
Tabs, similar to the tabs Mailchimp uses, make it possible to look at all prices at the same location, despite when they're offering different products. Tabs make it clear that there are three products.
HubSpot is one step ahead and has two tabs offering various plans and services, and the other handles bundles. In some cases, it's not just an issue of moving to the next stage. If you're selling multiple items which are suitable to mix them?
How else can the best-in-class businesses explain their plans?
The top companies can utilize different pricing levels However, we've found several popular methods to explain how they decide on their pricing.
The most widely-used prices page features include:
- The FAQ section (72 percent)
- Plan add-ons that mention the plan (42 percent)
- The most popular plan is highlighted (36%)
What do you look for in an Subscription Management Solution?
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