If you run a SaaS company, you know that your services and products are unique, and this is something you should try to present through your pricing page.
Modeling your pricing strategies on other successful companies in and out of your niche is a tempting prospect. However, simply resorting to copying whatever your competition does is a disservice to your products as well as your customers.
Instead of falling in line with all the other options on the market, you’ll want to set yourself apart. You don’t need a top-level marketing firm or professional website design agency to tell you that — it’s pretty much Marketing 101.
Pricing provides such an exciting opportunity for aspiring SaaS businesses because it is by far the most overlooked method of driving growth. It is no secret that most companies spend most of their energy on acquiring new customers, and this sounds like the right thing to do — new customers bring more revenue.
However, as is usually the case in business, things are not that simple. It turns out that the pricing of your products actually affects your bottom line four times as much as acquisition.
Improving monetization by 1% nets SaaS companies an average revenue increase of a whopping 12.7%, compared to a relatively meager 3.32% brought by acquisition.
Top 5 SaaS Pricing Page Optimization Tricks
Developing a value-based pricing strategy is right up there when it comes to the best ways to improve conversion and monetization. The five essential pricing page optimization tips listed below will enable you to communicate the value of your product more effectively, motivating your prospects to convert. Let’s begin!
1. Spend Time Determining the True Value of Your Product
This step technically comes before you even begin to consider the layout of your pricing page, but we would be remiss if we didn’t mention it here. Consider it Tip #0.
The idea is to truly understand the value of your product and how to communicate this value effectively with your customers as soon as they load the page in their respective browsers. This is the only way to have a genuinely effective value-based pricing strategy.
This means surveying your audience and collecting robust data about the products and services that matter most to them. It also means learning what your prospects would be willing to pay for these products and services, so you can show plans and products that resonate with your demographic and present unique pricing tiers.
It is important not to let yourself relax even when you have all the data. Ideally, you’ll want to keep reevaluating your pricing strategy at all times, at least once a year. Get all the major departments within the organization to weigh in on the pricing as well.
Once you have a clear idea of your audience and what they respond to, you’ll need to pick the right tone to discuss your product. If most of your prospects are non-experts, you’ll want to steer clear from highly technical language, for example.
When it comes to making it easy for customers to understand which pricing bracket would suit them best, one of the best strategies is using simple, ideally single-word, labels.
For example, if you have three plan types, you could name them Starter, Standard, and Enterprise, pricing each option based on the price tolerance of the demographic it has been created for. That way, customers can expand their plan as their demand grows.
Perhaps more importantly, you’ll want to present some options for customers who don’t fit into any of the packages on offer. This is where the “Let’s Talk” button comes in.
Through this functionality, your prospects can discuss their needs with your sales team and adjust any of the plans according to their needs. Think of it in terms of swapping your fries for another serving of veggies at a restaurant.
Finally, highlighting the most prominent features of each package is key to helping customers understand what they’re getting themselves into.
2. Keep It Simple
Customers who find themselves on your pricing page have likely already gone through other, more content-focused pages of your site. By the time they reach this page, they’re probably most interested in clear-cut comparisons between pricing plans to help them make the right decision.
It can be tricky to balance informing your audience without distracting them from the goal — a conversion. Generally, you’ll want to tie all aspects of your pricing strategy together here. These aspects include:
- Understanding and alignment with the correct customer brackets.
- Price points relevant to what your customers are willing to pay.
- A presentation of the right mix of features based on the prospects’ needs.
Your customers will often fall into two or three buckets, ranging from casual to hard-core. Based on this, you can outline the differences in terms of features between the starter plan, the unlimited plan, and everything in between.
Going for a minimalist design on your pricing page is a good idea. Still, you also want to make sure to include information that your customers may find important, such as highlighting the most popular plan.
The bottom line is that understanding who your customers are and the features that matter to each group enables you to create plans and pricing options that each of the groups is willing to pay.
3. Provide Links Leading to Additional Information
When your prospects land on your pricing page, they’re in the final stage of the buyer’s journey. As we mentioned above, this is not the time to distract them with copious amounts of information — you want them to act swiftly and complete the purchase.
That said, customers may still want to get some more info on the product or your company as a whole before committing. The last thing you want is for them to feel rushed into making a decision while working with limited amounts of information, as the confusion and uncertainty could stop them in their tracks inches away from the finish line.
Like we discussed in the previous tip, you should try to provide a clear breakdown of your plans, including strong CTAs next to each one.
You should also let your prospects know they can contact customer support if they require any additional information. A live chat button would be best, as it would greatly set you apart from your competition. Only 13% of SaaS marketing sites offer this feature.
It is always a good idea to include information on returns and trial periods, reviews from other customers, and an FAQ section for extra support.
4. Show Prices in Customers’ Local Currency
If your prospects see products priced in their local currency, they will be more likely to make a purchase. But you can go even further than that by adjusting the price based on the value offered by the product in different markets.
Take a look at Evernote’s pricing based on the purchaser’s country of origin.
You’ll see similar pricing localization techniques employed by many other SaaS companies. Cosmetic localization is about adjusting your website’s currency, tweaking the payment process, and potentially changing other visual design elements.
On the other hand, proper market-based localization, i.e., adjusting your prices based on various market-related factors, encourages growth across different customer groups in various areas of the world. It involves much more in-depth market research into the demand for your product within said market.
5. Monitor Your Performance
Even if you follow every single piece of our advice, it won’t be easy to design the perfect SaaS pricing page on the first attempt. This is why monitoring the page’s performance metrics is crucial — it allows you to adjust your price points and design regularly.
That says, try to avoid A/B testing when prices are concerned. If your customers see prices fluctuate drastically while you test the product’s value, they might lose faith in the brand.
Moreover, unless you’re expecting some really high purchase volumes, chances are A/B testing won’t be a statistically viable way to test the impact of price changes.
Instead, you can focus on surveying both your prospects and your existing customers and ask them some of the following questions:
- What they expect out of each of the product options
- What price would reflect questionable quality in a product like yours
- What price would be too high regardless of the quality
- What they would consider a bargain price
- What they would be willing to pay for a product that meets all their needs
- If these questions seem familiar — great. Hopefully, you’ve been asking them since you first started your business.
Growing and maintaining a SaaS company is hard work. This is why you should not be afraid to let your pricing show your customers all the vision and resources that went into creating the product, rather than just its cost-based value.
The key is to invest in a value-based pricing strategy and present it through your pricing page in a way that resonates with your customers. This way, you’ll not only get them to convert but make them as excited about the product as you are.