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Picking the right pricing objective and an associated strategy is vital for the SaaS business. Which is the best pricing module that you should consider for your business? Unlock the answer here.
Though every SaaS company has different offerings for each of their customer segments, one thing that does not stay so different is the perfect pricing. Missing out on the right pricing objective that suits your product range will not just be detrimental for your business but also uncalled for. Are you leaving behind huge revenues on the table? Could you have made more profit? Did you lose substantial customers because of high pricing? What went wrong?
While nailing the right pricing objectives and strategies is critical to every SaaS business, you must know which is ‘the one’ for you and which isn’t. If that is what you have been wondering off-late, this blog will add some solace to that racking brain. Without any further delay, let us get to the point straight.
Pricing objectives are the preliminary goals and underlying framework your business sets to guide how you ultimately price a product or service. Before you pin an ideal price point for your products, you must know what is the right price. Simply put, without a well-defined pricing objective, you throw out the price to the water and see what floats and what sinks. Doesn’t sound like a strategy, right?
Relying upon and analyzing a couple of external factors such as business goals, maturity of the firm, timing, market stance and rank, budget accommodation and niche will help you determine what is your right pricing objective. In fact, according to a report by Prisync, about 27% of the customers say that pricing is the first factor that determines their purchase decision. Here, we will talk about some of the most sensible pricing objectives that you can deploy for your SaaS business.
The pivotal objective here is to draw in as much as money possible for your company. Generally, a business’s pricing objectives are aimed at the following:
Sales-related pricing objectives have two main objectives – one is boosting the market share and the other is enhancing volume.
One of the biggest factors that affect the performance of a market is the competition. The following competition-related objectives should be prioritized in a business:
Customers are the backbone of your business. With the right pricing, you win their confidence and trust and ensure that they do not get duped.12
Choosing the right pricing objective and a relative strategy is critical for your SaaS business and you know it. This demands constant analysis, research, and study of your current market stance, your competitor’s pricing, budget, and a lot of other factors to reach a streamlined decision. At the end of the day, you just want to position your business and your product for the ultimate success of your customer. This will eventually help in bringing you more customer retention, give the churn rates a backseat, and lead to higher customer satisfaction – which is your pivotal goal.
Simran hails from the content marketing backdrop with extensive knowledge in blogs, articles, and technical whitepapers in the non-fictional domain. She uses her ‘gift of the gab’ to explore new possibilities on her way and to make an exquisite impact on her readers. In her spare time, she likes to read journals on artificial intelligence or play with her cute kittens.
Published 16 Jul 2021, Updated 19 Jul 2021
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