Sunday, December 20, 2015

B2B SaaS pricing model based on pure customer success

When we launched SignupLab we had dozens of different SaaS pricing strategies to choose from. We could have copied subscription plans directly from typical sales CRM solutions based on amount of users. Or we could have provided a transaction based model, where volume of API or integration requests defines the price. Or perhaps implementing a simple feature based model where more advanced features are available only for premium customers.

But more we were studying the options, more clear it became: Almost all SaaS pricing models are based on limitations, while we wanted to think more about opportunities. For us it’s important that any company from small startup with couple of customers to a mature SaaS company with thousands of enterprise customers could use our service without obstacles in costs.

The biggest problem for us was that SaaS companies are very unpredictable. They might grow rapidly in many different ways, not necessarily in revenue. With SignupLab our customers can process sign-ups, track user activities, send onboarding sales letters, manage subscriptions and store archived sales data. We couldn’t define our pricing with any of these because relative changes from one month to another can be incredibly huge.

The only true meter is our customer’s success, which is connected to our value proposition: "Convert sign-ups to paying customers". Therefore it became very clear that we have to offer SignupLab based on the amount of converted customers.

This gives a perfect win-win: We are able to bill more if our customers succeed to convert their signed up users to paying customers with SignupLab's tools. Sign-up nurturing, free trial onboarding, user tracking and other activities driven by a growing sales team can be executed without limitations.

Customer success, pure and simple.

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