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How Elicit Online stopped charging for seats and started charging for value. SaaS pricing model redesign

by Damian Foks, Pricing Consultant

Client

Elicit Online is a Dutch SaaS company that helps factories capture and share expert knowledge. Their platform turns decades of hands-on expertise into structured, digital Knowledge Files — so new employees can use that know-how from the beginning instead of spending months learning by trial and error.

"They didn't come in with a pre-baked solution — they worked alongside us, challenged our assumptions, and helped us build a pricing model we genuinely believe in. What started as a consulting project turned into a partnership, we still rely on today."

Wouter Schotborgh, Director at ELICIT Online

Situation

We first met the Elicit Online team at the We Love SaaS conference. At that point, they already sensed that pricing was one of their biggest growth levers — they just hadn't come across a pricing consultancy that focuses exclusively on SaaS pricing strategy. That conversation was the starting point.

When we looked under the hood together, a few things became clear pretty quickly.

The pricing model had drifted into a strange place: Elicit Online was giving away premium features while charging for the core ones. The billing logic was inverted relative to where the real value sat. On top of that:

  • The per-user pricing model was working against adoption. In practice, multiple operators shared the same account, so the seat count stayed flat regardless of how many people actually used the product. Unlike usage-based pricing, this flat rate approach had no way to grow with the customer.
  • There was no packaging differentiation. The entire product went out as a single bundle — no add-ons, no tiers. Different customers had very different needs, but the pricing didn't reflect any of that.


What needed to happen was clear: find a billing metric that actually tracks the value Elicit Online delivers, build a packaging structure that makes sense for different types of customers, and bring some consistency back to how existing accounts are priced.

Goal

The goal was simple: to develop a pricing model in which: 1. customers are encouraged to grant an unlimited number of users access to the knowledge stored in ELICIT Online, and 2. what a customer pays is truly commensurate with what they receive. That sounds obvious. Most SaaS companies have never done the work to make it true.

For Elicit Online specifically: a billing metric that scales with usage, packaging that reflects how different customers use the product, and a team equipped to make confident pricing decisions on their own — long after we're done.

Approach

The Elicit Online team already understood their product and their customers. They didn't need a multi-week research phase — they needed a focused collaboration to turn that knowledge into a structured pricing strategy. So we designed the engagement accordingly.

One thing worth explaining: the project ran over roughly 18 months. That wasn't slow execution — it was a deliberate choice. Elicit Online's team had limited internal capacity, and compressing the timeline would have meant a worse result. More importantly, a big part of what we were doing was knowledge transfer. The goal was to build the team's own pricing capabilities so they wouldn't need a consultant every time a pricing question came up. That kind of work takes time if you want it to stick.

Our approach to pricing strategy redesign

The Elicit Online team already understood their product and their customers. They didn't need a multi-week research phase — they needed a focused collaboration to turn that knowledge into a structured pricing strategy. So we designed the engagement accordingly.

One thing worth explaining: the project ran over roughly 18 months. That wasn't slow execution — it was a deliberate choice. Elicit Online's team had limited internal capacity, and compressing the timeline would have meant a worse result. More importantly, a big part of what we were doing was knowledge transfer. The goal was to build the team's own pricing capabilities so they wouldn't need a consultant every time a pricing question came up. That kind of work takes time if you want it to stick.

Revenue Engine Diagnosis

We started with a focused review of Elicit Online's internal data and revenue structure. The goal was simple: understand where the current model was creating gaps between the value delivered and the value captured. Customer usage analysis showed us who the most and least engaged accounts were, and where the pricing model was failing to follow actual value. That shaped everything that came next.

Two-day pricing workshop

With the diagnosis in hand, we ran a two-day workshop at Elicit Online's headquarters. A well-structured workshop with the right people in the room delivers roughly 80% of the pricing strategy in two days. That's exactly what happened here.

Day one was customer mapping and pricing architecture. We mapped jobs to be done and buyer personas. The key finding: the customer base is pretty homogeneous. What differentiates accounts isn't size or industry — it's the number of Knowledge Files they need and the features around them. That insight pointed directly to the right billing metric.

We also ran a Feature Placement Matrix — every feature categorized into table stakes, differentiators, and potential add-ons. Several things bundled into the base product by default weren't actually used by everyone. Those became the foundation for add-ons: new revenue streams tied to real customer choice, not packaging guesswork.

The billing metric question got resolved through a side-by-side comparison of per-user, usage-based, flat rate, and hybrid models. The team landed on per Knowledge File — differentiated by size and type. It's tied directly to what Elicit Online delivers. It grows as customers capture more processes. And it creates natural variation in price that reflects real differences in what customers are actually getting — effectively a tiered pricing model built around the product's core value metric.

Day two was about equipping the team for the long run. A pricing model deep-dive — not a lecture, but a working session designed to build pricing intuition so the team could own future decisions. We also co-developed a value selling framework: how to test willingness to pay, how to communicate value during sales conversations, and how to run a pilot phase where prospects experience the full product before committing to a package. Commercial terms and contract structures rounded out the day.

Implementation and ongoing support

Strategy without implementation is just a document. We supported the rollout directly — pricing page revisions, brochure redesign.

Results

The full picture is still developing. Transitioning existing customers to the new model is an ongoing process — not a switch that gets flipped overnight. The 15 customers already on the new model are each on different amounts, which tells you something about how complex that transition really is. It's being done carefully, not quickly.

But the direction is clear. And a few things have already shifted in a meaningful way.

New customers are now onboarded onto a model where what they pay is connected to what they use. The per Knowledge File metric grows as customers capture more processes — the relationship deepens, and the revenue reflects that. That's a fundamentally different dynamic than a flat seat count that never moved.

Features that were previously bundled in by default — but used by only some customers — now have a natural home as add-ons. Customers who need them pay for them. Customers who don't aren't subsidizing them. Simpler and fairer for everyone.

Perhaps most importantly: the Elicit Online team now makes pricing decisions independently. Through the workshops and ongoing partnership, they treat pricing as a continuous process — not a one-off project that gets handed back to a consultant whenever something changes.

Why the partnership keeps going

Many pricing projects end with a deliverable and a handshake. Ours don't. Over a year after our first conversation at We Love SaaS, we're still working with Elicit Online — and the scope has grown.

It started as a pricing redesign. It became the team's go-to resource whenever a pricing question comes up: a new deal structure, procurement pushback, thinking through a market expansion. Having that on call means no re-scoping a new engagement every time something moves.

One thing we consistently recommend at this stage: dedicate someone internally to pricing. Even 0.25 FTE is enough to maintain what gets built. Pricing left unattended drifts back toward inconsistency. The companies that get the most out of a project like this are the ones that keep at it.

Quick Summary

ClientElicit Online — Dutch SaaS platform for industrial knowledge management
The core problemPricing model misaligned with product value: per-user metric slowed adoption, premium features given away for free, inconsistent legacy pricing across the base
What we didRevenue Engine Diagnosis → Two-day pricing workshop → Ongoing implementation support and pricing partnership
New billing metricPer Knowledge File, differentiated by size and type — tied to what Elicit Online delivers and grows with customer usage
PackagingBase package + add-ons built from features that were previously bundled by default
Timeline18 months — deliberately paced to match internal capacity and include knowledge transfer
StatusRollout ongoing — 15 customers on the new model, legacy transition in progress

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Frequently Asked Questions

What does it mean to align pricing with value in SaaS?

It means the billing metric — what you actually charge for — should reflect what customers get value from. If customers get value as they use more of a specific feature or output (like Knowledge Files), charging per seat creates a disconnect between what they pay and what they get. Value-based pricing closes that gap.

Why did the project take 18 months?

Two reasons. First, Elicit Online's team had limited internal capacity — compressing the timeline would have meant a worse result. Second, a significant part of the engagement was knowledge transfer. Building a team's ability to make pricing decisions independently takes time if you want it to actually stick.

What is a billing metric and why does it matter?

A billing metric is what you charge for: seats, usage, outputs, something else. It matters because it determines whether your revenue grows alongside the value you deliver. A poorly chosen metric — like per user when usage doesn't scale with users — puts a ceiling on growth and misaligns the customer relationship.

What is grandfathering in SaaS pricing and why is it a problem?

Grandfathering means letting existing customers stay on old pricing indefinitely when you update your model. Over time it creates internal complexity, inconsistency across your customer base, and often means your most established customers are paying the least. Transitioning them requires care — but leaving them in place has real costs.

How do add-ons differ from raising the base price?

A price increase asks all customers to pay more. Add-ons ask customers to pay more for specific value they choose to use. Features that only some customers need are better priced as add-ons — the people who use them pay for them, and the people who don't aren't penalized.

How long does a SaaS pricing project typically take?

Most of our engagements run 6–12 weeks for a focused redesign. Longer timelines — like Elicit Online's 18 months — usually mean either significant implementation complexity, limited internal capacity to run things in parallel, or a deliberate decision to include deeper knowledge transfer. The right pace depends on the company, not a standard template.

What is dynamic pricing and how can it benefit SaaS companies?

Dynamic pricing refers to real-time price adjustments based on market demand, usage patterns, and competitive signals. For SaaS companies, it allows you to optimize revenue and remain competitive by flexibly responding to customer needs and external factors.

How do market research and customer feedback improve SaaS pricing models?

Market research — including willingness to pay analysis and competitive benchmarking — helps identify where your pricing is misaligned with customer expectations. Customer feedback, gathered through surveys, interviews, and A/B testing, validates pricing hypotheses before you roll them out broadly.

What is annual contract value (ACV) and why does it matter?

Annual contract value represents the average yearly revenue generated per customer contract. It's a key metric for assessing business profitability and is typically used alongside customer acquisition cost (CAC) to evaluate whether your sales and marketing investment makes sense.

What is customer lifetime value and why is it important?

Customer lifetime value (LTV) measures the total revenue a business expects to earn from a customer over the entire relationship. It helps assess long-term revenue potential, inform retention investments, and evaluate whether your pricing is capturing enough value relative to what you spend to acquire and serve customers.

Quick summary

New billing metric tied to core product value (per Knowledge File)

Pricing now reflects what customers actually use — not how many seats they have

Add-on revenue streams built from features that were previously given away for free

1+ year ongoing pricing partnership

Damian Foks
Pricing Consultant

Pricing Professional with over 10 years of experience in the world’s leading consulting firms and the financial institutions. Passionate about helping clients and sharing knowledge about pricing and strategy especially in SaaS companies and Custom Software Development teams.

Schedlue a free consultation
Damian Foks
Pricing Consultant

Pricing Professional with over 10 years of experience in the world’s leading consulting firms and the financial institutions. Passionate about helping clients and sharing knowledge about pricing and strategy especially in SaaS companies and Custom Software Development teams.

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