Earlier today, I experienced a staggering 49% growth in MRR, jumping $110 in just 24 hours, thanks to our newly introduced pricing plans.
This surge brought our new MRR to $336.
The catalyst? A profound realization of the impact SaaS pricing can have on conversion and growth.
But was it as simple as adjusting our price points?
Not really. It's about a deep understanding of our Ideal Customer Profile (ICP), informed by 230 conversations.
The Complexity Behind Pricing
At a glance, pricing tables seem straightforward. Yet, many founders underestimate their significance.
Pricing isn't just about the numbers. It includes:
Each pricing tier must be crafted with a specific Ideal Customer Profile (ICP) in mind, ensuring it resonates clearly with its intended audience. For example, if your service caters to 3 distinct ICPs, your pricing structure should reflect this through three well-defined tiers, each tailored to meet the unique needs of its corresponding ICP group.
Following positioning, the next critical element is packaging. It is everything you bundle together to help your ICP solve their problem and get their desired outcome. If one package doesn't have all the tools they need to get results, it will fail.
Finally, we arrive at the actual pricing - Setting this figure isn't just about costs; it's about understanding the value your packaging delivers to the ICP. The goal is to ensure your customers receive at least ten times the price they pay, making it a valuable investment in their success.
From Theory to Practice
A little context - Our SaaS uses AI to find you press opportunities tailored to you and your company.
I started the year with 3 plans, although I had some early customers, but at the time I didn't fully understand my ICPs:
After introducing these new plans and an annual option at a 20% discount, the results were immediate and astounding.
The first sign-up for the annual Core plan ($180) came within 12 hours of a quiet rollout, followed by two more for the Core plan by Tuesday morning. This affirmed the new positioning our Core Plan took.
So we doubled down with an announcement to 200 past trial users, which led to three additional subscribers, culminating in a $110 MRR increase in one day, capped off with a glowing testimonial.
The Takeaway
SaaS pricing is a powerful lever that touches every facet of your business. The key lies in a solid grasp of your ICP.
Each founder should understand their pricing better than anyone else on the planet. And if you're unsure as a founder, talk to your customers, they will show you the path.
This surge brought our new MRR to $336.
The catalyst? A profound realization of the impact SaaS pricing can have on conversion and growth.
But was it as simple as adjusting our price points?
Not really. It's about a deep understanding of our Ideal Customer Profile (ICP), informed by 230 conversations.
The Complexity Behind Pricing
At a glance, pricing tables seem straightforward. Yet, many founders underestimate their significance.
Pricing isn't just about the numbers. It includes:
- positioning
- packaging
- pricing
Each pricing tier must be crafted with a specific Ideal Customer Profile (ICP) in mind, ensuring it resonates clearly with its intended audience. For example, if your service caters to 3 distinct ICPs, your pricing structure should reflect this through three well-defined tiers, each tailored to meet the unique needs of its corresponding ICP group.
Following positioning, the next critical element is packaging. It is everything you bundle together to help your ICP solve their problem and get their desired outcome. If one package doesn't have all the tools they need to get results, it will fail.
Finally, we arrive at the actual pricing - Setting this figure isn't just about costs; it's about understanding the value your packaging delivers to the ICP. The goal is to ensure your customers receive at least ten times the price they pay, making it a valuable investment in their success.
From Theory to Practice
A little context - Our SaaS uses AI to find you press opportunities tailored to you and your company.
I started the year with 3 plans, although I had some early customers, but at the time I didn't fully understand my ICPs:
- Pro ($29/mo): For business owners.
- Team ($75/mo): For companies with larger teams.
- Agency ($150/mo+): For SEO/PR agencies.
- No one wants the Team plan. Although sounds good on paper, most larger companies have a dedicated person who manages PR, and they see it as either a risk to their job or added complexity.
- Three Users emailed me explicitly stating they want a lower price point.
- The Pro plan's package doesn't resonate with everyone. One great feature some Pro users liked, others found it annoying.
- Core ($19/mo): Tailored for busy business owners who want more PR.
- Pro ($29/mo): For companies who are serious about their PR game.
- Agency ($150/mo+): For specialized SEO/PR agencies.
After introducing these new plans and an annual option at a 20% discount, the results were immediate and astounding.
The first sign-up for the annual Core plan ($180) came within 12 hours of a quiet rollout, followed by two more for the Core plan by Tuesday morning. This affirmed the new positioning our Core Plan took.
So we doubled down with an announcement to 200 past trial users, which led to three additional subscribers, culminating in a $110 MRR increase in one day, capped off with a glowing testimonial.
The Takeaway
SaaS pricing is a powerful lever that touches every facet of your business. The key lies in a solid grasp of your ICP.
Each founder should understand their pricing better than anyone else on the planet. And if you're unsure as a founder, talk to your customers, they will show you the path.