Continuity Income requires an Optimized Pricing Page; especially for SaaS companies with self-service sales models.
Ask most SaaS or Web App companies what the goal of their Pricing Page is and most of them will say "make sales." While that is just one of a few Pricing Page goals, it is certainly the most popular and arguably the most important. But what does "make sales" really mean? Specifically, what does it mean in the context of a SaaS, Web App, or other Recurring Revenue business, as opposed to a one-off traditional software product or standard e-commerce business?
Simply put, SaaS or Web Apps that have a subscription model - that is, some type of ongoing or recurring billing model - as their primary revenue stream - should be focused on growing their Monthly Recurring Revenue (MRR). This metric, part of Bessemer Venture Partners' 6C's of Cloud Finance, is actually encompassed by another metric - Committed Monthly Recurring Revenue (CMRR) - a formula that takes into consideration MRR on two levels - that which is in production and that which is "committed" via contract or some other method - as well as churn.
CMRR is a far more complete picture of a Recurring Revenue company's business, but either way - MRR or CMRR - the goal is to grow it.... hockey stick style. Up and to the right! For SaaS and Web App companies that have an automated sales process, the pricing page will be a key factor in growing revenue.
So what are some things you might do if C/MRR is flat and not growing? You could reduce barriers to entry for new customers, try different (shorter) free trial periods, increase incentives to convert from free trial to paid product, improve differentiators between Free and Premium products, ensure higher-priced tiers are aligned with the actual usage and value perception of the customer, and a lot more. All of these items will rely on the Pricing Page - along with supporting marketing and sign-up pages - to work toward the goal of C/MRR growth.
If C/MRR is flat or going down (though if churn is high, there are likely other factors at play beyond the scope of the Pricing Page - we can help with that, too), it could be attributed to a poorly designed pricing page and overall customer acquisition process. It is fairly simple - a pricing page that allows you to align your value proposition and the value perception of the audience will lead to more customers which will lead to growth in C/MRR. In a Freemium scenario, a well-designed pricing page could not only result in more sign-ups, but could cause customers to bypass the Free version altogether, efficiently moving them to Premium editions. No one said just because you have a free version that everyone *must* start there, right?
This is a topic is covered at length in the 5 Hour video series - the Pricing Page Success Formula - I put together to help you get the most out of your Pricing Page. For a limited time you can get the Pricing Page Success Formula video series - with content on Value Pricing, Pricing Page Design, and even Price Testing - for the Introductory price of ONLY $297.
Go get this amazing video series for only $297 right now. As soon as you get it, immediately watch the 35-minute Value Pricing Basics for SaaS & Web Apps video; it will truly change the way you look not only at pricing, but your entire marketing strategy, your customers, and your offering as a whole!