top of page
  • Writer's pictureNikhil Kotcharlakota

5 Steps for Pricing in PLG

Should SaaS companies spend time on perfecting or updating their price models?


What is the right price metric to use?


Is Price transparency important?


Airmeet is a great example of a company that understands all three.


They seem to be clear on the value their customer gets from their product.


For a customer using a virtual event hosting platform, the number of attendees is the most value add and not number of registrations. Airmeet tailored their pricing model based on attendees. 👏


Pricing metric should be set in such a way that as your customers grow, so will their Average Contract Value. Selecting the right price metric is very important and Airmeet did that really well by selecting the number of attendees as their price metric to create the pricing tiers.


Pricing transparency also adds to the customer experience and ease of doing business. A lot of B2B companies are now going the route of price transparency. Some of Airmeet’s competitors do not have transparent pricing. This makes it easy to do business with Airmeet.


By offering a free version of the product, Airmeet has ensured that smaller customers who can’t pay also use the product. And as they grow, will upsell the starter or the Professional package. Although I am not a great fan of Freemium, this is a wonderful example of a company using free option to go down-market ensure more active users of their product.


TL;DR:

1. Define the value you are offering

2. Select the right value metric – should be aligned with how your customer gains value

3. Select the right price metric. Your price/ACV/Revenue should grow as your customer grows and as they gain more value

4. Create price transparency - an important part of Product Led growth Strategy

5. Freemium package to gain users that are not your main customer segment

17 views

Comments


bottom of page