OnDemand WTP Pricing Research

Council Post: How To Increase The Average Revenue Per User For SaaS | Forbes

Introduce Variable Or Scalable Pricing

If you’re just charging subscribers a flat monthly price for your software, then you need to introduce variable or scalable pricing. Flat pricing is great when you’re just starting out and trying to attract your first users. But once you’ve got a decent-sized customer base and want to increase ARPU, you need to introduce pricing that allows your company to grow alongside your customers.

For instance, Evernote Business uses variable pricing, charging per user. So, a customer can sign up for the lowest-priced plan for one user, but when they need the ability to add more users to the account, they can upgrade to a higher-priced plan.

Alternatively, you can introduce scalable pricing. Scalable pricing is effective because it allows you to capture more revenue from the customers who can afford it without scaring off smaller customers who can’t afford the higher prices. We use scalable pricing at our company. For instance, our cheapest-priced plan is for users who get 5,000 page views. As our customers grow their websites and traffic, they upgrade to a higher-priced plan for increased page views as well as access to advanced features.

Read complete article here:

Council Post: How To Increase The Average Revenue Per User For SaaS.

Post a Comment

WP-SpamFree by Pole Position Marketing