When working with SaaS owners, we always start with the Internal Diagnostic to identify the low-hanging fruits that allow MRR sealing. Finding out where your money is leaking is vital before you make any price moves, and it helps to alleviate the results of increased churn in the case when some of your clients don’t accept the new pricing.
Within the diagnostic, we realized that there is room for price optimization - the churn was relatively low, and customer satisfaction relatively high. In terms of perceived value and perceived price, Survicate’s positioning was great. Its customers perceived it as a value generator that was not too expensive.
As a next step, we ran a thorough competitive scan. Our team of researchers meticulously scanned every platform indicated by Survicate as direct or indirect competition. We gathered publicly available data. On this basis, we were able to find out what Survicate’s positioning in relation to other tools was. What we discovered was just another indicator that bold price moves were safe in the case of our client.
Next, we run a detailed survey to test our hypothesis. We gathered 267 responses that helped us determine the price sensitivity for Survicate’s products. Willingness to pay turned out to be different for different use cases and personas, and it was also evidence that price optimization would go smoothly.
Last but not least we estimated the potential impact by running a scenario analysis. Thanks to that, Survicate team got an idea of how things can go in case of the best and the worst scenarios.