Create a more expensive pricing tier with more features

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mstsumaiyaseop
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Joined: Thu Feb 02, 2023 10:55 am

Create a more expensive pricing tier with more features

Post by mstsumaiyaseop »

Once you’ve completed all relevant research, you can choose any of three strategies to execute on it. 3 strategies to increase prices for SaaS users 1. Create a more expensive pricing tier with more features. Time and again, subscription businesses take heat from users because they increase prices. Many (or even most) businesses weather it out. Take Netflix. In the spring of 2011, they hiked their price, and many (800,000) of their subscribers deactivated their accounts. The company’s stock price dropped 77% in four months, battering its management’s reputation but did Netflix survive.

Actually, they did better: graph showing netflixs revenue growth even after raising prices. Zendesk had a similar experience—a poorly executed increase from which they recovered, even thrived. (After their debacle, they apologized.) Still, these companies could have avoided the painful process of trying to explain their price hike after the fact. One way Czech Republic WhatsApp Number List they could have improved their execution? Creating a new, more expensive tier with added features for interested users. Avoid angering users by introducing a new pricing tier Pricing experts at Price Intelligently say it like this: “Pricing changes don’t always mean higher prices. It could be shifting features within tiers.

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In other words, instead of raising prices for all users, you can announce new features (or shift existing ones) into a more expensive tier. example of higher-priced tier for saas platform. (Image source) But will existing users switch to the new tier? It depends on two previously covered topics: value and the market: Which features offer users more value? Do competitors provide this value? Could they start providing this value quickly? If your new pricing tier provides exceptional value and is protected from competitor challenges (i.e. is an economic moat), you may compel users to upgrade. Growth expert Ammo Singh shared a success story from a client: I created a new tier that included some features I knew users wanted as they requested them.
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