We are launching a B2B SAAS based Online platform which offers different products to clients for different application areas. All these products are stand alone and not connected to the main offering. Currently We have 3 plans which is based on Number of users. Higher plans have additional features like whitelabel etc. We have 4 different add on products which can help the same clients in case they need it. So instead of opting it to all, can we have it as an add on with separate price for each. So instead of clubbing all products and offering under one plan or one pricing, we can allow clients to pick and paying for all add ons they feel is required. So client X who wants only One product pays only for that and Client Y who needs all products pays for all 4 but at a special discount. 1. Does this kind for pricing work in SAAS? 2. Is it better for SAAS conversion to have all products offered to the client).
I am assuming that the optimal price and pricing tier is out of scope for this discussion. The problem is company X as A,B,C,D,E Products and can the price be a,b,c,d,e ?
The answer is "ITS ALWAYS LIKE THAT" if you are selling 5 different product with can function independently and and got noting to do with each other. Like SOAP, SHOE, BAG, CAR and PENCIL ..
The moment you have 5 products that can be linked to each other, under the same umbrella (website or any other channel), we get into a situation of PARADOX OF CHOICE ! And this may hamper the conversion.
A simple way to solve the above issue is to keep separate landing pages and pricing details for each product. Check out https://www.atlassian.com/software
Another great example (not SaaS but the concept is same) is TESLA MOTORS. http://www.teslamotors.com/ They have 4 products. 2 are cars and the remaining 2 are battery related. It is a sub-portal within the site.
Getting into details
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Assuming that the product are related to each other (unlike tesla) there are 3 scenarios
A) Each Product is a standalone and not an extension of each other
. E.g ADOBE http://www.adobe.com/products/catalog/software._sl_id-contentfilter_sl_catalog_sl_software_sl_mostpopular.html
E.g Photo editing, Video editing, and Video distribution. The market segment or target market is same but each prospect may buy any 1 or 2 or all the 3
Strategy - (1) Avoid clutter and have sub-portals (2) Up-sell and Cross-Sell the most appropriate next buy (3) Provide a bundle one price deal (E.g COMCAST Phone + Cable + Internet for $99 a month. Each individually could cost $199)
B) Each product is a standalone but is also an extension to each other. It has the SYNERGISTIC EFFECT when integrated or used in the same ecosystem
E.g
OFFICE 365 (https://products.office.com/en-us/business/compare-office-365-for-business-plans)
ATLASSIAN (https://www.atlassian.com/software)
Strategy - (1) Tiers (Basic to Premium) as per your understanding of your target's behavior. This definitely needs experimenting E.g OFFICE 365. Each tier has different set of products too. (2) Consultative Cross Selling (E.g https://www.atlassian.com/purchase/product/jira-software ). When you buy JIRA, they suggests what else goes with it.
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The largest Product page I have ever seen is MICROSOFT AZURE (https://azure.microsoft.com/en-us/ ).
- More that 2 dozen products
- All different pricing, with trial and free offers
- A customer may need a combination of 5-6 products at-least to build a solution
strategy (1) Pricing calculators to relieve anxiety (2) Detailed documentation with use case and examples (3) Well done 'information architecture' (ia) while categorizing the various products under different groups.
Hope it helps...
Nefin
Answered 8 years ago
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