321 clients with changed pricing. Almost 0% churn increase. ARPU growth from $90 to ~$130. And it all started with one discovery: roughly 30% of the customer base was paying less than the catalog price.
Brand24 is a publicly-traded company offering real-time social media monitoring and analytics. It is designed to keep track of online conversations about a brand and its products. Brand24 collects real-time social data from millions of sources around the web. Their web-based dashboard provides actionable customer insights, email alerts, influencer analysis, automated & customized PDF reports, infographics, and more. The tool allows measuring critical metrics around buzz and sentiment.
Over 30,000 brands widely use its international version worldwide to monitor their PR & marketing efforts. The company serves some of the most prominent customer logos globally, including H&M, IKEA, Intel, Carlsberg, Discovery, Vichy, and Leroy Merlin — however, their main client focus is around small and medium businesses, which are their primary target market and generate the majority of revenue. Retaining loyal customers through effective SaaS pricing strategies is essential for building trust and ensuring long-term business success.
Michał Sadowski, Brand24’s CEO, is named the #1 Polish marketing influencer, and we leveraged his outstanding social media reach during the pricing engagement (i.e., to gather survey responses).
The company's revenue growth highlights the importance of understanding revenue generated when evaluating the effectiveness of pricing changes. SaaS pricing models are a core driver of how SaaS companies generate revenue, grow their market share, and retain loyal customers over time.
I was skeptical towards pricing research, but we know much more about our customers and the value we create as a product. Overall, the business impact of the pricing changes and ROI of the project was so high that we even had to communicate it to our investors. That means something.
Brand24’s management hypothesized that the current pricing scheme neither captures nor signals the value to the distinct buyer personas, including marketing managers, PR companies and agencies, data analysts, and content creators. Initially, the product communicated three plans, differentiated primarily by monitored keywords and mentions volume; some feature differences were minor for the overall picture considering total price differentiation. Compared to other pricing models in the software industry, such as one-time purchases or tiered pricing, Brand24’s approach was limited in flexibility and value communication.
In other words, the SaaS pricing strategy wasn’t aligned with how different customer segments actually perceived and used the product. The plans didn’t reflect what customers valued most - and the pricing didn’t reflect what Brand24 was actually worth. Selecting the right pricing model requires evaluating product value, understanding customer segments, and analyzing competitor pricing to ensure alignment with market needs.
When considering price differentiation, it is also essential to factor in profit margin to ensure prices are sustainable and competitive.
Brand24 approached the Valueships team with a request to organize a value-based pricing optimization initiative, including price increases and reengineering the current pricing model. Benchmarking and market positioning should always include an understanding of the competitive landscape. It is also important to regularly review and adjust how you set prices to align with customer value and changing market conditions.
The main objective was to increase ARPU by considering rising software development costs. To achieve this, it was essential to align pricing with customer value, ensuring that the pricing strategy reflected the actual benefits and outcomes customers receive. This approach helps enhance conversion rates and customer retention. Another priority was creating a new pricing model that would effectively communicate the product value in different market segments. Making strategic pricing adjustments is crucial to reflect evolving customer needs and maintain competitiveness. A flexible pricing model also supports growth into new markets and accommodates diverse customer segments. In short — figure out how to increase ARPU without damaging the customer base that Brand24 had spent years building. A flexible pricing model allows SaaS companies to grow into new markets and support diverse customer segments.
We ran a full SaaS pricing optimization engagement for Brand24, combining revenue engine diagnostics, competitive benchmarking, and willingness to pay research. Leveraging customer data - including purchasing behavior and engagement metrics - helped inform our pricing decisions at every stage. Here’s what happened at each step.
We started with a granular revenue engine diagnostic - our standard deep dive into internal data. The analysis of the data delivered by Brand24’s crew allowed our analysts to discover something critical: roughly 30% of the customer base paid less than the catalog price indicated.
This is what we call a SaaS discounting policy problem. The discounts had accumulated over time through a relatively liberal retention policy - when customers signaled they planned to leave, they were offered a discount to stay. Well-intentioned, but over time it created a significant revenue leak. Nearly a third of the customer base was paying below list price, and nobody had quantified the full impact until we ran the diagnostics. Monitoring operational costs alongside revenue leaks is also essential to ensure profitability and guide strategic decisions.
We calculated the impact of sealing this discounting leakage. Our estimate: introducing a stricter policy in this area alone would account for a 10-15% MRR increase on discounted accounts. Fixing the discounting policy not only boosts monthly recurring revenue but also strengthens overall recurring revenue, supporting long-term business growth. That’s how to increase MRR without acquiring a single new customer - just by fixing what’s already broken.
Monitoring customer acquisition costs (CAC) is also crucial for understanding how much each user costs to acquire.
Next, we created ROI models considering four different scenarios that could pan out after increasing the prices among heavily discounted customers. Each model had an additional risk parameter linked to the actual price increase applied to a given account. After scenario modeling, it is important to consider making strategic pricing adjustments to optimize both customer retention and revenue.
Our models suggested that the churn rate would need to increase to improbable levels (30%+) to make the whole discount policy sealing unprofitable. In other words, even in the worst-case scenario, the math worked. This gave Brand24’s management the confidence to proceed — they knew exactly what to expect and what the downside looked like. Assessing churn rate is essential in the pricing optimization process to understand how many clients are canceling their subscriptions. Focusing on customer retention during pricing changes helps minimize churn, maximize customer lifetime value, and maintain long-term relationships.
This is a pattern we see across many engagements: the fear of churn is almost always worse than the reality. When you have data showing that churn would need to 5x before the decision becomes unprofitable, it’s a lot easier to move forward.
We ran a thorough competitive scan to assess Brand24’s market positioning. We used data points available via public sources and databases to benchmark the company against its peers. Understanding the competitive landscape was crucial in informing our pricing decisions and ensuring Brand24's saas discounting policy remained relevant and competitive.
What we discovered was remarkable. Brand24 enjoyed outstanding net promoter scores and provided unusual customer ROI payback vs. other tools. Their overall pricing was far below the market value line. In other words - the company charged too little for the value they created.
We also found that Brand24 used an entirely different primary value metric (keywords) than the market consensus (scrapers or mentions). From a SaaS pricing strategy perspective, this was actually an advantage. Software companies often use unique value metrics to position their saas product in the market, helping them stand out and better address customer needs. The product was not directly comparable to competitors, which allowed for better, more differentiated positioning. When your pricing isn’t directly comparable, you have more room to price based on value rather than matching the competition.
Last but not least, we ran survey research using advanced techniques designed specifically for pricing. Besides identifying key price points, the survey helped us understand which product features were perceived as table stakes and which were genuine differentiators. Understanding what customers are willing to pay for, based on perceived value, is crucial for setting effective price points.
This was vital for re-modeling the pricing page and preparing new product packages suited for the actual needs of different users. For example, offering additional features in premium plans can encourage upselling and increase profitability without needing to acquire new customers. A value-based pricing strategy means you don’t guess which features justify higher tiers - you let the data tell you. Highlighting a particular feature as a premium or tailored option can also influence customer engagement and increase ARPU.
Aligning pricing with customer value can enhance conversion rates and customer retention.
The results confirmed everything our analysis predicted - and then some. This is a textbook example of how to raise SaaS prices without losing customers.
A consistent increase in average revenue per paying user indicates a thriving business that's monetizing its user base effectively.
The ROI of the project was so significant that Brand24 had to communicate the results to their investors. When a pricing engagement becomes material enough for investor communications, it says everything about the impact.
The SaaS landscape is constantly evolving, and market trends have a direct impact on how companies approach pricing. As cloud computing, artificial intelligence, and machine learning become more prevalent, the demand for SaaS solutions continues to rise. This growth brings both opportunities and challenges: while the market expands, so does the number of competitors and the sophistication of customer preferences.
To stay ahead, SaaS companies must keep a close eye on competitor pricing, emerging technologies, and shifting customer expectations. Flexible pricing models are essential in this dynamic environment. Tiered pricing allows businesses to offer different packages for varying needs, while usage based pricing gives customers the flexibility to pay for what they use. Flat-rate pricing models can appeal to customers seeking simplicity and predictability. By offering a range of pricing models, SaaS businesses can cater to diverse customer preferences and optimize revenue streams.
Monitoring market trends and being willing to adapt pricing strategies is crucial for maintaining a competitive edge. SaaS companies that regularly review their pricing structure in light of industry developments and customer feedback are better positioned to capture growth opportunities, respond to market shifts, and deliver more value to their customers.
Pricing is a powerful lever in the customer acquisition process for SaaS businesses. The right pricing strategy can open the door to new markets and customer segments, while the wrong approach can limit growth and reduce customer lifetime value. Understanding the long-term revenue potential of each customer—through metrics like customer lifetime value (CLV)—is essential when setting prices and designing pricing models.
Tiered pricing is a proven way to address the diverse needs of different customer segments. By offering multiple pricing tiers, SaaS companies can make their product accessible to a broader audience, from small startups to large enterprises. Customer feedback plays a vital role in shaping these pricing decisions, providing insights into what features and benefits customers value most, and how much they are willing to pay.
A customer-centric pricing strategy not only attracts new users but also drives customer satisfaction and loyalty. SaaS companies that listen to their customers, adapt their pricing models to meet evolving needs, and prioritize customer satisfaction are more likely to build lasting relationships and reduce churn. Ultimately, a flexible, data-driven approach to pricing helps SaaS businesses acquire new customers, maximize revenue, and maintain a strong position in a competitive market.
321 clients with changed pricing
almost 0% churn increase
48k$ net annual gain
new ARPU growth from $90 to ~$130
overall ARPU growth from $94 to $121
Certified expert in price, revenue and margin management in B2B companies and e-commerce. Member of the prestigious Professional Pricing Society. At Valueships, he is responsible for the implementation of consulting projects and taking care of the profitability of clients. Prior to joining Valueships, he worked at McKinsey & Company in the area of pricing and strategy.
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Certified expert in price, revenue and margin management in B2B companies and e-commerce. Member of the prestigious Professional Pricing Society. At Valueships, he is responsible for the implementation of consulting projects and taking care of the profitability of clients. Prior to joining Valueships, he worked at McKinsey & Company in the area of pricing and strategy.
