In an episode of Jon Myer Podcast, I had the privilege of joining host Jon Myer to explore B2B SaaS pricing strategies. We addressed the challenges of treating free users and paying customers equally, especially within B2B SaaS companies. We highlighted the difficulties in acquiring new customers and the low conversion rates for freemium companies.
Our conversation examined the transformative impact of adopting a customer value-based approach, embedding value-driven messaging across all aspects of customer success and sales. We investigated the importance of understanding customer segments and the competitive market landscape in formulating pricing strategies, providing valuable insights for businesses at various stages.
Key topics we covered in this episode:
- Why Freemium is not effective in B2B cases.
- Importance of understanding customer segments and differing needs for pricing and packaging.
- Introduction of the SVCS model for strategic pricing.
- Importance of price positioning.
04:55 Company stage and pricing strategy.
08:49 How to move into a premium market segment
10:56 Packaging and value communication.
18:36 Pricing and product development.
30:07 Converting free users to paid.
Understanding Customer Segments in Product Development:
“There’s no average Customer, there’s no average product. If you build an average product, it wouldn’t be valuable or useful, or differentiated for anyone.”
— Dan Balcauski
The Importance of Pricing in Product Management:
“You don’t have a choice of whether or not you will have a pricing conversation. You only really have a choice of when you will have a pricing conversation.”
— Dan Balcauski