How to communicate a SaaS price increase

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sumaiyaseobd9
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How to communicate a SaaS price increase

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How to Increase SaaS Prices the Right (and Profitable) Way Home All Things Data-Driven Marketing By: Victor Ijidola Published: Jul 31, 2019 | Last updated: Dec 23, 2022 How to Increase SaaS Prices the Right (and Profitable) Way Have you ever gotten a bill that—inexplicably—is two or three times more than usual? What was your reaction? Probably something like this: [A SaaS vendor] pulled a massive price increase on us (over 300%!) and that was it. I don’t care how much I like their product, I’m gone. We use Drift now. I got that from a user who junked her paid account after a vendor jacked up their price by 300%.

Stories like this might terrify you if you’re thinking about increasing prices for your SaaS product. You might annoy them or, worse, lose them outright to a cheaper competitor. Your fear is China WhatsApp Number List reasonable. As CrazyEgg’s co-founder, Hiten Shah, puts it: “When customers have countless choices available to them in the market, they are prone to shop around for the best price.” But there’s hope: Churn isn’t the only outcome of a SaaS pricing increase. You will anger some users. Some will churn. But, if done right, a net revenue boost is entirely possible. Need proof.

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The SaaS brand I mentioned at the start is Intercom. And, as of now, they still boast 30,000+ paying customers (each of whom is paying more than before). intercom homepage showing 30000 customers. Much of the outcome depends on what you do before you announce the price increase. This post will help you get that (and a few other things) right: Identify if the time is right to raise SaaS prices; Know your strategic options for increasing SaaS prices; Communicate a price increase to existing users effectively. Table of contents Is it time to raise prices for your SaaS product.
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