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SaaS

Revenue and margin growth challenges will be especially painful for subscription businesses, even more so in economic instability. 
The world of SaaS is growing every year. Their ability to scale is enormous, but achieving success is no walk in the park. Being aware of that, we've analyzed over 300 SaaS companies to know even better how to shape SaaS growth.
The world of SaaS is growing every year. Their ability to scale is enormous, but achieving success is no walk in the park. Being aware of that, we've analyzed over 300 SaaS companies to know even better how to shape SaaS growth.

We understand SaaS business inside out. Typically we help our clients with pricing strategy optimization based on quantitative and qualitative research to maximize MRR and/or ARPU impact. We tailor our engagements to the client's situation based on the initial diagnostics.

We understand SaaS business inside out. Typically we help our clients with SaaS pricing strategy optimization based on quantitative and qualitative research to maximize MRR and/or ARPU impact. We tailor our engagements to the client's situation based on the initial diagnostics.

We can help both with SaaS margin sealing and SaaS pricing optimization to reflect willingness-to-pay, but also with SaaS pricing transformation that includes Core Value Metric diagnostic and business model investigation.

Core SaaS challenges

SaaS pricing mismatch

SaaS companies frequently set the prices based on their gut feeling, leaving plenty of margin on the table. SaaS pricing as a topic is scattered around the organization with no proper processes, knowledge, or capabilities. 

According to our research, SaaS companies underperform in terms of SaaS pricing strategy and operations compared to the wider tech market.

Lack of expansion revenue

Our SaaS clients typically focus on revenue from new users only, while the biggest growth lever is already in their current base. No tools or offering for current clients and lack of pricing differentiation influence their opportunities to grow. A particular SaaS's ability to grow horizontally is what distinguishes good from great SaaS companies.

Grandfathering and discounting

One of the most significant flaws in SaaS businesses is the lack of organizational confidence and rigid procedures for handling long-term discounted clients. According to our research, discounted/grandfathered clients tend to churn more heavily not even mentioning how much margin potential they consume in time.

Running a SaaS? Let’s talk about your challenges – and how to overcome them.
Schedule a free SaaS consultation
Running a SaaS?
Let’s talk about your challenges – and how to overcome them.

How we can help your SaaS

We can help address those challenges by tailoring an approach to the specific use-case of our clients through analytics, data science, and primary research.

Connecting primary research with the usage analysis helps us understand what willingness to pay, packaging, and billing model are ideal for your SaaS growth, both in terms of margin and revenue.

Increasing SaaS pricing and plans differentiation, and setting up usage thresholds based on deep research enables SaaS companies to successfully encourage users to up-sell.

Advanced analytics on current clients, P&L analysis, and SaaS churn analytics associated with discounts limitation help us make informed decisions on how you should approach your users.

Services

Strategy consulting

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Pricing Consulting

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Value-selling

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Advanced analytics & primary research

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I was skeptical about pricing research, but now we know much more about our customers and the value we create as a product. Overall, the business impact of the pricing changes and ROI of the project was so high we even had to communicate it to our investors. That means something.

Michał Sadowski
CEO Brand24

+23 %

Average Revenue Per User

0%

churn increase

+23 %

Average Revenue Per User

48 000 $

net annual gain
Michał Sadowski
CEO Brand24

I was skeptical about pricing research, but now we know much more about our customers and the value we create as a product. Overall, the business impact of the pricing changes and ROI of the project was so high we even had to communicate it to our investors. That means something.

Case studies

Discover the effect of collaboration with our recent Clients. You can go through their situation, goal, approach and results.

Let's uncover the story!

Discover the effect of collaboration with our recent Clients. You can go through their situation, goal, approach and results.

Downloads

2023
How we improve profitability of our Clients

Do you want to know more about our offer? You can download full version here:

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FAQ

How do SaaS pricing models differ from traditional software pricing?

SaaS pricing models typically involve subscription-based pricing, where customers pay a recurring fee for access to the software. This differs from traditional software pricing, which often involves one-time upfront fees for software licenses and periodic payments for maintenance or upgrades.

What are common SaaS pricing strategies?

Common SaaS pricing strategies include tiered pricing (offering different plans with varying features), usage-based pricing (based on usage levels or resources consumed), freemium (offering a free plan with limited features), and flat-rate pricing (one price for all features).

How can value selling be applied to SaaS sales?

Value selling can be applied to SaaS sales by focusing on the unique benefits and solutions provided by the software, such as increased productivity, cost savings, or process improvements. Sales teams should communicate the return on investment, ease of use, and ongoing support to potential customers.

What is a SaaS sales strategy?

A SaaS sales strategy involves defining target markets, setting sales objectives, identifying the best channels to reach potential customers, and developing a sales process that highlights the unique value of the software solution, ultimately driving conversions and customer retention.

How can SaaS businesses benefit from pricing consulting?

SaaS businesses can benefit from pricing consulting by identifying optimal pricing structures that align with their value proposition, target audience, and market dynamics. Consultants help develop pricing strategies that maximize revenue, customer acquisition, and retention.

How can SaaS businesses optimize customer acquisition costs?

SaaS businesses can optimize customer acquisition costs by targeting high-value customer segments, streamlining marketing efforts, utilizing cost-effective channels, and optimizing the sales funnel to convert leads more efficiently.

What is customer success in the context of SaaS?

Customer success in SaaS refers to proactive efforts to ensure customers achieve their desired outcomes using the software, leading to higher satisfaction, increased retention, and potential upselling opportunities. It involves onboarding, support, training, and ongoing engagement.

How can SaaS businesses improve customer retention?

SaaS businesses can improve customer retention by delivering consistent value, offering excellent customer support, implementing effective onboarding processes, monitoring usage data to identify potential churn risks, and actively engaging with customers to gather feedback and address concerns.

How can SaaS businesses improve customer retention?

SaaS businesses can improve customer retention by delivering consistent value, offering excellent customer support, implementing effective onboarding processes, monitoring usage data to identify potential churn risks, and actively engaging with customers to gather feedback and address concerns.

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Schedule a free 30-mins consulting session

Do you have some questions about how consulting can help increase your revenue? We have answers!

We work for clients from all over Poland as well as abroad. We can arrange a videoconference, talk on the phone or meet in our Wrocław office. However, please email us in advance or contact us via the form.

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