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Pricing is more than just a number on a contract — when used thoughtfully, it can become a strategic tool for your SaaS product that can drive product adoption, customer satisfaction, and business growth. ” Pricing is also more than just the bottom-line price level. ” So, How Should You Price?
As a former salesperson in hyper-competitive industries like tech, telecommunications, and media, I’ve seen firsthand the importance of getting your product and service pricing approach right. A well-crafted AI-powered pricing strategy helps companies to be competitive in their target market.
That means there’s an increased likelihood of terminating the contract because the tool is no longer needed and/or its champion is gone. There are always leaders who prioritize low prices over the value products provide. The churn for this persona is high because they are likely to switch to lower-priced providers.
What she wanted to review was pricing issues (they are heavily threatened with tariffs), specific contract issues, and other similar things. With this CRO, the people that should have been doing this work were her RVPs, some of the Sales Ops Team, and some from Contracts/Legal. It exacerbates it. It creates other problems.
Your pricing and quoting strategy. Pricing isnt just a number you stick on a product or service. The structure and logic behind your pricing can nudge buyers toward larger deals, reinforce your value, and streamline the path to yes. One of the most overlooked levers? Its a narrative. A positioning tool.
Every brand knows that pricing plays a major factor in purchasing decisions. Price is one of the most visible parts of any offer, and getting it wrong can cost more than just a few sales. A poor pricing strategy erodes trust, damages positioning, and undermines long-term brand growth. Lets get started.
When sales decline, businesses begin to reduce expenses, lower prices and delay making new investments. In 2024, it is estimated that overall advertising spending growth in the U.S. Compare this to an average growth of 23.3% Essential products are often price-sensitive during a downturn. prior to 2020. That’s great.
In scaling the cash-flow side of SaaS, there’s almost nothing more powerful than a nnual contracts combined with prepaid cash. At Adobe Sign / EchoSign, half the reason we went cash-flow positive at about $5m in ARR was prepaid annual and multiyear contracts. But … to go to annual pricing or not … .
Over the last decade, he has worked with countless sales organizations to help them scale from startup to high-growth machines. For example: Revenue is driven by metrics like win rate, ACV (average contract value), and number of deals closed. You can’t change what’s already happened. Deliberate Practice : Repetition is key.
So Jamin Ball of Altimeter has a great summary of the cumulative revenue growth of all public SaaS companies … and it’s not a great story: Aggregate net new ARR added in Q1 from the software universe isn't looking good! Market Saturation : Many categories that drove explosive growth in previous years are reaching maturity.
Q: What billing or pricing tactic have you found in the end just wasn’t worth it? ” and “Something we found really effective at CoursKey, and other vSaaS businesses will likely find as well: Instead of running pilots, sign a multi-year contract but give them an opt-out after 3-6 months. .” Jason, ed. :
Salespeople pushing you to sign multi-year contracts you don’t want. Traditional SaaS sales is incented to close 1+ year contracts without no outs as quickly as possible, and where possible, for every possible seat you might ever use in Year 1. If they prefer utility pricing, maybe that’s the way there.
AI can help discover preferences in contracts, understand how legal teams like to negotiate and implement that automatically in the software. One example from Ironclad, but something we all experience as a SaaS company is contract negotiation. This is where AI can come in.
You will then be able to take steps to increase your margins, whether it’s by negotiating a better deal with your suppliers, reorganizing your price structure, or reducing your overheads. Leasing will save you lots of headaches, put less pressure on your monthly finances, and allow you to pick up a new lease at the end of your contract.
But that’s not why raising prices is so difficult. Instead, poor planning is to blame: Companies neglect to plan a price increase until there’s a financial squeeze or, for the thirtieth time, a customer confides that, “You know, you really ought to charge more.”. What’s at stake: The exponential impact of a price increase.
SaaS pricing can be overwhelming when there are unlimited paths and opportunities that exist. Even though most companies acknowledge its importance, SaaS founders often choose a simplistic approach to pricing—that is, if they don’t choose to ignore it altogether. Making pricing work for your business.
How do you take good revenue growth to great revenue growth? Intercom CEO Karen Peacock reveals the top strategies that accelerate revenue growth and the steps to take your business to the next level. . Yet your top-level numbers may actually obscure critical information that could help with company growth.
An article on growth and marketing in the middle of a crisis—the current one or any other—can seem tone deaf. And getting it right during the lean years, Bain reports , has a massive impact on companies’ growth rate after things improve: ( Image source ). Novel pricing strategies beyond the $0.99 Tim Stewart, trsdigital.
Finding it can help your teams prioritize their efforts, guide how you invest resources, and measure actual success against your potential for growth. Knowing your SAM and TAM helps you plan realistic growth targets, so you can confidently expand your distribution and increase production. Sign up now Thanks, you’re subscribed!
It knows what every B2B leader ever featured on SaaStr thought about critical business challenges at every stage of growth. It knows what every SaaS leader ever featured on SaaStr thought about critical business challenges at every stage of growth. This isn’t just a note-takerit’s an AI that knows your product cold.
Zeta Global’s stock price jumped 15% yesterday as the company issued a detailed rebuttal to a report critical of its financial practices. Culper Research is owned by Christian Lamarco, who is known for short-selling stocks and may profit from a drop in Zeta’s stock price. Shares closed at $25.4 Wednesday after opening at $22.
retail spending in 2025 were generally aligned around mid-single-digit growth despite the impact of tariffs. annual sales growth of $5.29 annual sales growth of $5.29 The NRF says this year’s forecast aligns with the 10-year pre-pandemic average yearly sales growth of 3.6%. Before today, predictions for U.S.
With limited time to publish shopping lists, send email blasts and do social media posts, try increasing your pricing because you have to make up for the lack of quantity this year. By implementing the above strategies and remaining flexible, you can turn the challenges of the 2024 holiday season into opportunities for growth.
So somehow, “Product Led Growth” became a seemingly magic savior for many struggling SaaS companies. Customers often sign 3+ year contracts, and architect their entire business processes around ServiceNow. Raising prices and making threats at renewals helped a bit in 2023. The post Product-Led Growth Is Great.
This includes contracts, pricing approvals, and any legal requirements. Focus on actionable insights and prioritize the areas that will have the biggest impact on revenue growth. Are customer success teams equipped to drive renewals and expansions? And remember, the more data-driven you are, the better your results will be.
But, one use case I havent seen talked about as much is AI pricing models. So why not apply AIs data-driven approach to pricing models and optimization, too? I wanted to learn more about AI pricing models and how AI can help optimize pricing for all industries, so I talked to the experts.
Snowflake is on a tear again: $4B ARR (just about) 28% revenue growth 44% free-cash flow last quarter (WOW!), 11,159 Customers — So An Average of $360,000 Per Customer Snowflake solves enterprise-grade problems around data management — and it charges prices commensurate with that. No, it’s 2025. ” #3. . #5.
Should sales just disappear once the contract is signed? #5. 59% of you have raised prices this year. I think most of us have found our pricing is more elastic than we thought. The related question then becomes do you raise prices on existing customers — or just new customers? Some times, you do have to cut.
25x’d Revenue and Crossed $100M ARR Apollo.io, an all-in-one go-to-market platform, underwent a significant transformation in its business model that led to remarkable growth. This decision was validated through A/B testing, which showed new traffic converting at 20 times the previous rate, despite the significantly lower price point.
For example, a $25k pilot can grow into a $1M+ enterprise-wide contract over time. Focus on landing the logo first, then build expansion metrics into your sales comp plans to drive growth within the account. While Zoom works for smaller deals, in-person meetings build trust and help you close larger contracts faster.
The price itself also varies depending on the business type, company size, industry, and other factors that affect the cost per lead metric. What matters, though, isn’t the price tag itself, but whether the lead generation agency can bring in leads at a cost that allows you to stay profitable. It depends. And that costs money.
Slow growth means a low multiple. New Relic is an icon but growth has slowed to 14% annually. It’s a reminder why there is such a premium paid from VCs and others for growth today. And why VCs don’t really want to fund folks with good-but-not-great growth anymore. This means New Relic trades at just 6.6x
You choose a price based on size, add any extras, and send your customers on their way. You need to evaluate pricing, implementation, features, integrations, and ongoing support. Because of the hefty price tag, complex sales lead to a longer sales cycle than transactional sales. Take buying a CRM, for example.
Field service can help drive revenue growth by selling to your existing customers, also called upselling or cross-selling. Paired together, monetizing every field service visit while leaning into that customer trust sets the stage for revenue growth. Include sales expectations as part of your employment contracts.
Asana’s biggest growth is in its $50k+ deals, but its ACV is still just $3,600 … or $300 per month. Pretty amazing to see end-users without budget using a Free edition still driving the majority of growth at $150m+ ARR. And until it started to go upmarket after $125m+ ARR, it never really raised prices.
And while it’s stock price is down from its 2021 peaks, it’s still up 2x since its 2020 IPO. 3,245 Customers, Up 23% — While ARR is up 40%. A good example of how driving deal sizes up (see the next point) and strong NRR lets you drive NRR up well about new logo growth. #2. No Year of 100% Growth After $10m ARR.
This is essential for companies to improve their overall profitability and achieve sustainable growth. That’s especially true as many consumers are making decisions based on price, and most retailers are pushing price increases back on brands. the growth over those that don’t.
“They’ll look at your prospectus, sometimes help develop it and give recommendations on how many of each level they think you could secure and what price points would work.” Contract negotiations present significant opportunities for cost savings.
The amount of time it takes to turn a lead into a customer will depend on the service you are offering, and the price of that service. There are some obvious levers for growth in this stage of the sales pipeline. Making a proposal is more than just sending the prospect your standard product menu and price list. Negotiation.
This technology integrates with product catalogs, pricing databases, and customer relationship management (CRM) systems to produce detailed and accurate quotes swiftly. Data integration: The software connects with existing CRM systems, product catalogs, and pricing databases to access real-time information.
At Connections ’24 we announced that customers in the AMER region could access many of the features we were building out in Marketing Cloud Growth and Advanced Editions. In the Winter ’25 release, we are expanding new functionality in Account Engagement to all customers on Growth, Plus, Advanced, and Premium.
So in 2023, Josh came back as CEO again to return the company to growth. Josh is Spending a Ton of Time on the Road With Customers to Get Back to Growth. 60% more users log-in to accounts with consumption-based pricing, and 50% of new customers are choosing consumption-based pricing. #4. 5 Interesting Learnings: #1.
Growth is great until your content cant keep up When your sales team is small, consistency is easy. Pricing tables are inconsistent. Its a sign that your content foundation hasnt kept up with your growth. That can mean anything from misrepresented pricing to contract clauses that Legal never approved.
Product-led growth (PLG) companies have become a major trend in the world of SaaS over the last few years. These companies are characterized by being product-led; in other words, conversion, retention, and growth are led by the product itself. Secret #2: Pricing. Each rep is probably sending out multiple contracts per week.
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