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Discussion on the B2B SaaS NRR squeeze tomorrow
My monthly pricing open discussion is (tomorrow, July 14) is discussing the current NRR squeeze in B2B SaaS. Feel free to join us. https://luma.com/hjf7aagi
Managing AI costs with pricing
Working with a customer to implement RevTurbine (revturbine.com). We are implementing a reverse trial which is triggered by the key onboarding action (connecting the user's trading account), and used as an incentive to complete it. The trial is on a separate hidden tier (subset of lowest paid plan features) which provides great flexibility: play with limits to control AI costs, segment however you like (e.g. higher limits for stronger prospects), etc - which is all in line with the customer promise: 21 day trial (no tier specified). And you have usage/feature based upsells to the paid tier during the trial (on top of the time limit as a conversion moment). This feels like it could be applicable to other folks, so thought would share. Happy to hear any comments/questions also.
5 part series: Making usage pricing predictable
More and more SaaS firms are jumping on the bandwagon of usage-based pricing. But customers are less sure, with fears of running up large bills and perceived loss of budgeting controls. This week I will provide 5 case studies that highlight different approaches to bridge this transition. First up: CONFLUENT and setting a floor price that limits the customer's upside risk: https://www.linkedin.com/feed/update/urn:li:share:7482022704833916928/ Love the Pricing SaaS community's comments and feedback!
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"Why are they charging for tokens if it's so valuable?"
I loved hearing Alex Karp on CNBC say that tokens measure the wrong thing https://www.youtube.com/watch?v=0A3sGymV6kY I'm not sure I agree with him on the needing to deploy your own models to overcome it. There's so much we can do in pricing to "fix" this!
Change the pricing metric, change the basis of customer trust
How you charge goes a long way into defining how customers receive value from you. When the metric changes, customers will re-evaluate if the value is still there and can be trusted. When Hubspot changed their model, they faced backlash not because they didn't plan for different segments, but because the customers didn't fully understand the new model. The lesson: CLEAR and PROACTIVE communication about how the new model will impact each customer goes a long way. https://www.linkedin.com/feed/update/urn:li:activity:7474793314920304640/ Love to hear your thoughts!
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