How to optimize your SaaS Pricing Strategy

Most SaaS Marketing Leaders understand the concept of having multiple price levels, made up of heroes, anchors, and decoys. 

  • Decoy: A- (meant to make A look attractive)
  • Hero: A (what you want to sell your prospects)
  • Anchor: B (an expensive alternative meant to make A look like a great deal)

What often gets forgotten is to make sure the Hero SKU/Price/Plan is optimized for the correct KPI given the maturity of your SaaS business.

When you're still in the early stage of your growth, you may want your Hero SKU to be optimized around driving customer satisfaction and market share. Once your getting further down your product maturity journey your Hero should be the optimal choice to drive Revenue growth, and ultimately Profitability (don't create a Hero with a high Cost-to-Service for example).

Create a Hero price option, and align it with the right KPIs for your growth stage.