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Before you think about conversion, you should think about your ARPU.
We’ve done an exhaustive study of SaaS pricing at Price Intelligently, peering inside over 5,000 small and large subscription software companies and capturing our findings in this free 140 page book on pricing strategy. Often, companies within the SaaS ecosystem aren’t pricing correctly or targeting the right buyer personas.
Even if your conversion rate stays constant, you can triple or quadruple your ARPU by setting up the right pricing strategy and focusing on the right customers.
That’s a better move than trying to get more leads who might not be the best from a maximization of revenue or adoption standpoint.
Your pricing page has a huge impact on conversion. Make sure that your pricing tiers are aligned to the buyer personas you’re targeting. Add some language to each tier that specifies the target customer like “great for small businesses” or “perfect for mid-size companies scaling up.” You can use your copy to implicitly guide customers to a higher price tier; no SaaS company wants to be a “small business.”
Focusing on maximizing ARPU lets you focus on converting your most valuable customers by delivering the right product at the right price.
If you have any questions on conversion or anything else related to SaaS, feel free to reach out to me at patrick@priceintelligently.com or on twitter at @patticus
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Founded in 2012, Price Intelligently is revolutionizing how businesses price their products and services through technology that leverages existing and potential customers to determine true value. We built our technology because too many companies are relying on faulty data, competitive benchmarks, or “gut feelings” to set the most important lever in their business, and therefore are leaving an enormous amount of cash on the table. Essentially, we’re nerds and we love it.
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