Today we are going to be talking about how you can upsell your SaaS products to your customer. We have been inspired to write this piece by the brilliant, and we are going to base it a little on the excellent content which he uploaded to his blog, regarding what he calls third dimensional pricing.
Three dimensional pricing means that when an SaaS company is selling a package to a client, they must include a time frame for the plan, rather than letting it roll on indefinitely. The first two dimensions are users and usage and the third and most important is time. There is a wealth of benefits which this can give to companies and the ability to upsell is one of them. Based on this, here is how the business can better upsell to clients.
Most SaaS providers are developing more than one software suite and this could provide a perfect opportunity to try and bundle a package for a customer, in order to bump them up a tier. This will also provide developers with the chance to showcase other products which they sell, which could result in further business down the line.
Using the Price Hike
One of the benefits of using this three dimensional structure is that you can employ it to raise prices each year, without putting off customers. This price rise can also be used as a tool to try and get customers to upgrade. Let’s say for example that you tell a customer that the price will be increased by 7% on the previous year. Following this you can offer them the chance to upgrade from silver to gold, for the same increase. This will cost you a small amount of money now, but in the long term you will make more money from the customer and keep them on the gold tier.
Another aspect of upselling which you could look into is adding time onto the package for your customer. Let’s say that f they go from bronze to silver tier, that you will give them 2 months free on a 14 month deal. This could be a great way to entice the customer to go in for a bigger package.
Dropping the Points
And the most obvious way to do this is to tell your customers that you can give them a free trial at gold for one month, and if they do not like it you will change them nothing for it. This could be a great for them to try out the top package, without any kind of commitment. Once they use the top package you could easily find that they like it so much, that they just stay there.
As you can see, the three dimensional plan which Josh talks about is the perfect way for your SaaS business to upsell to the customer in the hopes that they will invest more money with you.