Blulogix

DECEMBER 5, 2024

By BluLogix Team Navigating Complex Pricing Models in the Subscription Economy Introduction In the subscription economy, Managed Service Providers (MSPs) must adapt to increasingly complex pricing models to meet the evolving needs of their customers. Gone are the days of simple, one-size-fits-all pricing.

Payment Features 59

Payment Features Subscription Pricing Technical Review 59

User Pilot

OCTOBER 19, 2024

As such, you must tailor your strategies to meet your target customers’ specific needs and expectations. What does customer satisfaction look like for SaaS businesses? Unlike traditional businesses, most SaaS businesses operate the subscription pricing model. As a result, satisfying customers is key to any success in SaaS.

Business 111

Business Underperforming Technical Team Customer Lifetime Value Systems Review 111

User Pilot

NOVEMBER 14, 2024

Customer expansion drives recurring revenue and long-term growth. By increasing the value provided to existing customers through different expansion tactics, companies can reduce churn and enhance customer lifetime value. These are available at the checkout at discounted prices.

Strategy 105

Strategy Payment Solutions Payments Customer Lifetime Value 105

Subscription Flow

DECEMBER 10, 2024

Changing customer expectations, digital advancement, and transforming market trends call for a price discipline. Fair and competitive pricing, especially in the SaaS arena has emerged as a strong requirement for businesses looking for operational stability. What is Dynamic Pricing SaaS? 7 Types of Dynamic SaaS Pricing 1.

Pricing 52

Pricing SaaS Customer Lifetime Value Subscription 52

SaaStr

APRIL 30, 2022

Average Revenue per Customer. Customer Lifetime Value (LTV). Customer Acquisition Cost (CAC). & We look at annual churn, given the nature of those businesses that have annual or multi annual contracts with much bigger price items and tickets. This is where we’re putting that price, et cetera.

SaaS Payments 246

SaaS Payments Metrics Payment Methods Scale 246

Tom Tunguz

FEBRUARY 20, 2024

The company embarked on a suite strategy 5 years ago to capture more customer budget by cross-selling products. That idea works … Our 2 platform customers have an average customer lifetime value that is more than 5 times that of our single platform customer. …but only up to a point.

AI 230

AI Outsourced Development Customer Lifetime Value Cybersecurity 230

Stax

JUNE 3, 2025

Ultimately, high customer satisfaction translates into loyal customers, lower support costs, and stronger referrals. Refine your pricing strategy over time Pricing isn’t a one-and-done decisionit’s a growth lever that evolves with your product, customer segments, and market conditions.

Payment Services 88

Payment Services DevOps as a Service SaaS Payments Payments 88

Baremetrics

AUGUST 8, 2021

For most SaaS businesses, customer acquisition is one of the most challenging stages of growth. For most, the easiest ways to increase customer acquisition rates are to offer a freemium model or price your product on the lower end of the spectrum. Increases the Value of Your Product 3. Raise Prices for New Customers 2.

Pricing 111

Pricing SaaS Scale Customer Lifetime Value 111

FastSpring

OCTOBER 13, 2023

Pricing starts low per transaction, but it will add up quickly if you’re looking for a more robust service. The pricing page at 2checkout.com shows that with their 2Sell base product, you can “sell any type of product.” They also have an enterprise pricing package called 4Enterprise. Is Stripe a merchant of record?

Payments 160

Payments Payment Methods Payment Services Merchant Services 160

User Pilot

SEPTEMBER 20, 2023

Optional product pricing can help SaaS companies earn more money while charging less for their otherwise premium product. TL;DR Optional product pricing is a strategy where you sell your core product at a low cost and then encourage consumers to buy more accessories, features, or complementary products.

Pricing 105

Pricing Customer Lifetime Value Advertising Strategy 105

Baremetrics

SEPTEMBER 10, 2021

When one company, or a group of companies, has a large enough market share in an industry, it may be able to push the price away from the equilibrium. This is called price leadership. Baremetrics is a business metrics tool that provides 26 metrics about your business, such as MRR, ARR, LTV, dunning, total customers, and more.

Leadership 98

Leadership Pricing Forecasting Customer Lifetime Value 98

Incredo

JUNE 25, 2019

You analyze your needs and the pricing plans and pay for the most comfortable one. For example, Zapier’s basic plan allows to create 5 zaps, and two-step automation (one trigger, one option) while priced plan includes multi-step zaps, premium apps, conditional logic. And so does the freemium pricing model. Limited usage.

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SaaS Pricing Software Review Acquisition 236

User Pilot

NOVEMBER 7, 2024

Velaris – pricing is only available upon request. Catalyst – pricing is only available upon request. Gong.io – pricing is only available upon request. Gong.io – pricing is only available upon request. Gainsight – pricing is only available upon request. G2 rating : 4.4 G2 rating : 4.8

Customer Success 105

Customer Success Enterprise Software Review Startup 105

Baremetrics

OCTOBER 31, 2021

Bundle pricing is one of the many pricing strategies employed by companies in an attempt to increase their revenue and/or profit. In bundle pricing, a company collects many products and/or services together and sells them as a single item for a single price. The lower price is one of the key components.

Pricing 95

Pricing Customer Lifetime Value Churn Enterprise 95

Intercom, Inc.

APRIL 14, 2020

Key takeaway: “A study by Price Intelligently showed that a 1% increase in customer acquisition affects your bottom line by about 3.3%. But improving your retention rate by 1% extends customer lifetime value and increases your bottom line by around 7%.

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Retention Customer Lifetime Value Churn Acquisition 245

SaaStr

FEBRUARY 14, 2021

But that 5-seat Team edition sale customer … is still there in Year 2 and Year 3, paying you. And maybe even adding seats.

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Revenue Sales Hiring Customer Lifetime Value Churn 264

Incredo

JULY 14, 2019

To shed light on your doubts and questions, we have compared and analyzed the pros and cons of these two subscription pricing models , knowing how essential it is for your SaaS success. History of the subscription pricing model: From newspapers to the rise of SaaS subscription. What is the subscription pricing model?

Payment Features 184

Payment Features SaaS Payments Payment Methods Subscription 184

Buffer Resources

OCTOBER 28, 2024

And with Buffer's pay-by-channel pricing model, I've been able to scale the services I pay for up and down based on what I need. Pricing: Free plan available. Pricing: Starts at $69/month. Pricing: Free plan available. Pricing: Starts at $19.79/month Pricing: $625 setup fee. All in all, Predis.ai

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Social Media AI Search Marketing Business 105

User Pilot

SEPTEMBER 1, 2024

Looking for SaaS pricing examples to get inspiration for your own strategy? In this piece, we’ll explore different pricing models and go over some brands that implemented these in real life. Hopefully, by the end of the article, you’ll have ideas on how to design a pricing strategy that contributes to product growth.

Pricing 104

Pricing Strategy SaaS Scale 104

User Pilot

OCTOBER 24, 2023

From the messaging, positioning, and pricing models, every little detail needs to be perfect for product-led growth to take off. TL;DR Usage-based pricing is a consumption-based pricing model that charges customers based on how much they use a product (instead of at a flat monthly rate). What is usage-based pricing?

Pricing 105

Pricing Payment Solutions SaaS Payments Payments 105

SaaStr

JULY 30, 2024

After that, some customers will continue to use the product and say, “Yes, my company is expanding. They’ve played with it and are willing to pay full price. For PLG, you keep it healthy by providing users with realized value and the ability to play with your product throughout the lifecycle. I need this.” How Do You Monetize?

Underperforming Technical Team 288

Underperforming Technical Team Enterprise Scale Payments 288

FastSpring

JANUARY 7, 2021

of customers would join a loyalty rewards program, and 39.4% will spend more on a product with that company even if they can find a lower price with a competitor. The evidence shows that now is the time to cultivate your customers’ loyalty through a strategic loyalty program. Customer Lifetime Value (CLV).

Customer Lifetime Value 148

Customer Lifetime Value Scale Forecasting Engineering 148

Baremetrics

JANUARY 18, 2022

Competitive pricing is key to succeeding in a global market. There are now an estimated 213 million registered companies globally, each competing with one another on the basis of service, customer care, and pricing. Price is one of the largest determining factors for consumers in terms of which products and services they buy.

Payment Methods 98

Payment Methods Pricing Payment Services Social Media 98

OpenView Labs

SEPTEMBER 8, 2021

2021 has proven to be the year of usage-based pricing. . 45% of expansion stage SaaS companies now say they have a usage-based or consumption-based pricing model, according to data from OpenView’s forthcoming 2021 Finance and Operations benchmarks report. . Pricing: Keep it simple even if that means leaving some money on the table.

Customer Success 97

Customer Success Pricing Scale Compensation 97

Intercom, Inc.

SEPTEMBER 10, 2020

In the world of SaaS, this is usually in the form of unit economics : a customer lifetime value (LTV) to customer acquisition cost (CAC) ratio of greater than three, and a payback period of 12 months or less. What does the conversion rate from appointment to customer need to be for our sales reps?

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Scale Scaling Sales Recruiting Sales Hiring 227

Blulogix

MARCH 18, 2025

Overcharging, underutilization, and revenue leakage are just some of the hidden costs of traditional pricing models. Businesses that fail to address these inefficiencies may struggle to retain customers and optimize revenue. High Customer Churn Lock-in pricing frustrates users and leads to cancellations.

Subscription 59

Subscription Payment Features AI Search Customer Lifetime Value 59

USIO

JANUARY 15, 2024

Customer Retention: Subscriptions encourage customer loyalty as users are committed to the service for a predefined period. This reduces the churn rate, ensuring a more stable customer base. Lifetime Value (LTV): Subscription models often result in higher customer lifetime value.

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SaaS Payments Payment Services Payments Payment Solutions 130

Neil Patel

MARCH 2, 2021

For example, in terms of the upstream oil market, if an oil supply is in an area requiring heavy infrastructure investments, the amount applied to extract the oil may be greater than its market price per barrel. While this is the quick and dirty calculation, what happens if customers make more than one purchase over their lifetime?

Acquisition 145

Acquisition Metrics Customer Lifetime Value Advertising 145

Blulogix

NOVEMBER 13, 2024

However, their impact on profitability is not always straightforward, especially for industries like Managed Services Providers (MSPs) , Unified Communications-as-a-Service (UCaaS) , Software-as-a-Service (SaaS) , and Internet of Things (IoT) businesses, where recurring revenue models and complex pricing structures are common.

Customer Lifetime Value 59

Customer Lifetime Value Compensation Subscription Payment Features 59

User Pilot

MAY 16, 2023

We also examine a few examples of how companies use value metrics in their pricing strategy. TL;DR Value metrics are the features of a product that customers associate with its value and are happy to pay for. Tracking them regularly will allow you to iterate on your initial ideas to fine-tune your pricing strategy.

Metrics 98

Metrics Customer Lifetime Value SaaS Pricing 98

User Pilot

OCTOBER 5, 2023

This metric helps SaaS companies choose the most effective customer acquisition channels , diagnose inefficiencies in customer retention strategies , and inform pricing decisions. Additional metrics to track alongside the CAC payback period include Customer Lifetime Value (CLV or CLTV) and the LTV:CAC ratio.

SaaS Payments 105

SaaS Payments Customer Lifetime Value Acquisition Payment Solutions 105

Subscription Flow

OCTOBER 16, 2024

That is because such businesses offer diverse pricing models such as usage-based, volume, or tiered pricing. These can be the customer churn rate, retention rate and LTV (customer lifetime value), to name a few. Incorporate unique links into your invoices to make payment convenient for your customers.

Payment Services 59

Payment Services Payment Solutions Payment Features SaaS Payments 59

Stax

MARCH 18, 2025

To choose the right payment processing solution for your business, you need to evaluate your business needs, evaluate security and compliance standards, and evaluate different payment processors based on pricing, features, customer support, and scalability. On top of that, it improves the customer lifetime value (CLV).

Payment Services 88

Payment Services Merchant Services Payment Methods Payment Solutions 88

Incredo

JANUARY 14, 2020

But for low-price monthly packages, you need to keep it short and simple. We have seen SaaS companies that have a simple product, rely on the power of a freemium plan and have low monthly fees. How to optimize your SaaS sales funnel? If they become an SQL1, they are sent to BDRs via an automated Slack trigger.

Sales Funnel 239

Sales Funnel SaaS Sales Social Media 239

Stax

MARCH 18, 2025

Churn is the percentage of customers that end their subscriptions within a certain amount of time. Customer lifetime value. Often abbreviated to CLV or LTV, this is the amount of revenue generated by a customer as long as they have an account with your SaaS company. Customer acquisition cost.

Scale 117

Scale Payment Services Payments SaaS Payments 117

User Pilot

SEPTEMBER 4, 2024

This actionable metric shows how much you’re spending to acquire each new customer. By comparing CAC to customer lifetime value , you can determine if your acquisition strategies are sustainable and identify areas to optimize marketing spending for better ROI. Actionable metrics: Customer Acquisition Cost (CAC).

Product Marketing 105

Product Marketing Metrics Customer Lifetime Value Social Media 105

User Pilot

JANUARY 28, 2024

Time-to-Value measures how quickly users experience value, key for improving onboarding and reducing churn. Free-to-paid conversion rate indicates the effectiveness of product value proposition, pricing, and user engagement strategies. This metric is important for understanding the long-term value of customers.

Metrics 105

Metrics Customer Lifetime Value Business SaaS 105