How to increase MRR: SaaS pricing strategy used by Navifleet to achieve a 25% increase using only internal data

by Kris Szyszkiewicz, Partner & Co-founder

Client

+25% MRR increase. Stable customer retention. And the entire project was built on internal data alone - no surveys, no external research. Just deep diagnostics, smart segmentation, and a communication strategy that turned a risky price increase into a growth milestone.

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Navifleet, a leading SaaS player in telematics and fleet management, was established in 2012. The company developed an innovative platform that simplifies fleet management for businesses, catering to over 1,500 clients ranging from local enterprises to multinational corporations. Their dedication to continuous improvement sets them apart, consistently exceeding client expectations.

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Navifleet leveraged customer data and usage data to inform their pricing strategy and segmentation, analyzing user behavior and feature utilization to optimize revenue and improve customer retention.

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Working with Valueships was a great experience. Their expertise in SaaS pricing and deep understanding of our challenges were evident from the outset. Their analytical approach, combined with an insightful communication strategy, not only drove our MRR significantly up but also ensured customer retention. The team at Valueships didn’t just provide a solution; they equipped us with tools and insights that will benefit us for years to come.

Wojciech Smoleń, CEO Navifleet

Situation

While Navifleet operates a dual business model consisting of hardware and software, the significant challenge lay predominantly in its software segment. Their pricing model had remained static for years, potentially affecting their competitiveness. Sales costs were escalating, and rising operational costs - such as infrastructure and support - were putting additional pressure on profit margin, making regular pricing reviews essential.

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The existing pricing structure no longer reflected the value provided, especially given the diverse range of use cases they addressed. The complexity of more than 15 functionalities in the “choose your own module” system compounded the issue. Implementing per feature pricing and clearly defined usage limits could help address this challenge by aligning pricing with customer needs and encouraging upgrades. The industry’s fluctuating nature, influenced by varying fuel and car prices and inflation, added further challenges.

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This is a classic B2B SaaS pricing problem: the product evolves, the market changes, but the pricing stays frozen. Over time, the gap between value delivered and price charged keeps widening 0 and at some point, you need a SaaS pricing consultant to help close it. Pricing models should evolve as services and market conditions change.

Goal

The CEO and the extended leadership team at Navifleet believed their pricing no longer reflected the value they provided to their customers, especially considering their product development journey. Value-based pricing focuses on what customers are willing to pay for the perceived value your product delivers, ensuring buyers feel they're paying a fair price for meaningful outcomes and not just access to features. The question was clear: how to increase MRR in a way that’s fair to existing customers and sustainable long-term, while maximizing customer lifetime value and increasing overall customer lifetime.

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We were engaged to assist with both pricing and packaging strategy - rethinking not just the numbers, but the entire structure of how Navifleet’s product was sold.

Approach

Given the multifaceted challenges, our traditional survey approach was deemed unsuitable due to the varied user personas. Instead, we focused entirely on Navifleet’s internal data - making this a pure SaaS pricing optimization engagement built on what was already available inside the business. Analyzing customer success data and tracking usage were key to understanding customer behavior and informing the pricing strategy.

While market research and customer feedback are often used to refine pricing strategies, in this case, internal data provided sufficient insights for our approach.

Choosing a flexible pricing model allows SaaS companies to grow into new markets and support diverse customer segments.

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1. Revenue Engine Diagnostics

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We started with our revenue engine diagnostics, analyzing the business’s current state including legacy pricing and discounting policy patterns. As part of this process, we monitored key metrics such as churn and ARPU to inform pricing decisions and identify areas where strategic adjustments were needed.

We delved into the different use cases supported by Navifleet, discerning which customers utilized which functionalities. Our investigations revealed a prevalent SaaS discounting policy and grandfathering problem — a pattern we see in almost every company that hasn’t touched pricing in years. Discounts accumulate, legacy deals pile up, and before you know it, a significant portion of your customer base is paying well below the value they receive.

Transitioning to probability modeling, we leveraged machine learning to understand combinations of functionalities that customers often purchased together. This wasn’t a standard pricing analysis — it was a data science approach to understanding actual usage patterns, and it gave us insights that no survey could have provided. To execute value-based pricing well, companies must conduct customer pricing research, collecting feedback and analyzing usage data to ensure pricing aligns with customer-perceived value.

This analysis helped identify high, medium, and low upsell potential functionalities. In other words, we now knew exactly which features justified higher pricing and which ones customers would be willing to pay more for.

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2. Pricing model and packaging redesign

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A key challenge was ensuring no customer faced disproportionately high universal price hikes. Our primary principle was to structure the pricing and packaging strategy to allow multiple minor price adjustments reflecting the value provided, while minimizing major price changes. When designing pricing tiers, it's crucial to serve different customer segments—such as small businesses, startups, or enterprises—by aligning each tier with their specific needs. Keeping the pricing structure simple and transparent helps avoid confusing potential customers, which can otherwise lead to hesitation and lost conversions. Considering the sector’s challenges, significant price hikes presented a high risk of customer churn.

This is where the SaaS pricing strategy had to be surgical. With 15+ functionalities and over 1,500 clients, a one-size-fits-all approach would have been reckless. Instead, we:

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1. Segmented price increments — different customer groups received different adjustments based on how much value they were getting relative to what they were paying.

2. Modeled potential churn — we ran scenarios for each segment to understand what level of churn was acceptable and at what point the math stopped working.

3. Created a calculator — this tool predicted customer reactions to different price change scenarios. Once we identified price adjustments that corresponded to value and maximized revenue potential, we gauged the acceptable churn risk for our client.

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The tiered pricing model offers multiple pricing plans at different price points, each designed for a specific target market or customer segment. Tiered pricing is one of the most popular SaaS pricing models because it balances accessibility with monetization. The ideal number of tiers in a tiered pricing model usually ranges between 3 and 4, although some companies may offer up to 6 tiers. Each tier should clearly offer more value, such as additional features or higher limits, as customers move up in the pricing structure. Tiered pricing encourages upgrades as customers grow by allowing them to select a plan that best suits their needs and budget. This model allows SaaS companies to serve different customer segments, from small businesses to enterprises, from the same platform. To avoid confusing customers, it's recommended not to have more than 6 tiers in a tiered pricing model.

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3. Communication strategy & implementation

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This is where most SaaS companies stumble — and where Navifleet’s engagement really stood out. Having the right price is only half the battle. The other half is how you raise SaaS prices without losing customers in the process. Transparent communication of price increases helps retain loyal customers and build customer loyalty, ensuring that customers feel valued and informed throughout the process.

To minimize churn resulting from the price increase, we developed a tailored communication strategy. This involved segmenting clients based on size and potential churn risk, then customizing the communication — the language, channels, and contingency plans for any adverse reactions.

We also conducted a workshop with Navifleet’s CSM team, equipping them with tools, training, and guidelines to communicate the changes effectively. When a customer calls asking why their price went up, the CSM needs to have a clear, confident answer backed by value — not just “prices went up across the board.”

Interestingly, our segmentation identified ten distinct client groups. One segment, even without direct price changes, was informed about the overall pricing adjustments. This proactive approach was well-received and likely enhanced our retention efforts with this group. Transparency, even when you don’t have to be transparent, builds trust. That’s a lesson that applies to every SaaS price increase.

Regularly revisiting pricing strategies based on customer feedback and market changes is crucial for maintaining competitiveness.

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Results for existing customers

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The results were exceptional — and proof that you don’t always need expensive external research to make smart pricing decisions. Sometimes, the answers are already sitting in your data.

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+25% MRR increase, even after accounting for churn

Stable customer retention — we observed a temporary increase in churn for just one month, after which it reverted to its usual level

Built entirely on internal data — no surveys, no external research, just deep diagnostics and smart modeling

Tailored communication strategy — 10 client segments, each with customized messaging, channels, and contingency plans

CSM team equipped with tools and training — the team was prepared to handle every customer conversation with confidence

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The new pricing structure improved conversion rates and improves customer acquisition by offering more value to different customer segments. Gathering insights from customer interviews can also provide valuable information for setting appropriate price points.

Armed with actionable insights on value and a data-backed rationale, Navifleet confidently navigated the pricing transition, prepared to address any concerns. This is what a well-executed SaaS pricing strategy looks like in practice.

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Customer acquisition and retention

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For SaaS companies, balancing customer acquisition and retention is key to sustainable growth. Pricing strategy plays a pivotal role in both attracting new customers and keeping existing customers engaged. A competitive, transparent pricing structure can improve customer acquisition by making it easy for potential customers to understand what they’re paying for and why. At the same time, delivering ongoing value—through regular updates, new features, and responsive support—helps retain existing customers and builds a loyal customer base. By continuously refining their pricing strategy and ensuring it aligns with customer needs, SaaS companies can drive long-term revenue growth and maintain a healthy mix of new and returning customers.

Competitive advantage

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A strategic approach to SaaS pricing can be a powerful source of competitive advantage. By tailoring the pricing model and structure to the unique needs of their target market, SaaS companies can stand out from the competition. For example, a usage based pricing model may appeal to customers who want flexibility and only want to pay for what they use, while a tiered pricing model with clear price points and feature sets can attract customers looking for specific solutions at a fair price. Understanding customer needs and market dynamics allows SaaS companies to develop a pricing strategy that not only differentiates their offering but also maximizes customer value and business growth. The right pricing model, aligned with a thoughtful pricing strategy, can help SaaS companies capture more market share and build lasting customer relationships.

Frequently Asked Questions

How do you increase MRR without acquiring new customers?

There are two primary levers: fixing pricing leakage (discounts, grandfathering, legacy deals) and restructuring pricing to better capture the value you deliver. Navifleet used both. Revenue engine diagnostics revealed discounting and grandfathering patterns that had accumulated over years. Combining that with a redesigned pricing and packaging strategy - based on machine learning analysis of actual feature usage — resulted in a 25% MRR increase from the existing customer base alone. SaaS businesses can also increase MRR by adopting other pricing models, such as per feature pricing, usage based models, and the flat rate pricing model, to better align with customer needs and maximize revenue.

Can you optimize SaaS pricing using only internal data?

Absolutely - and Navifleet is the proof. While we typically combine internal data with willingness to pay surveys and competitive benchmarking, in this case the varied user personas made a traditional survey approach unsuitable. Instead, we went deep into internal data: usage patterns, feature combinations, discounting history, and customer segmentation. Machine learning helped us understand which functionality bundles customers actually used together, giving us insights no external survey could have provided. In the SaaS industry, companies often use the per user model, per feature pricing, and other popular SaaS pricing models to optimize revenue and serve different customer segments.

How do you handle a SaaS discounting policy that’s eroded pricing over time?

First, you quantify the damage - how many customers are on below-catalog pricing, and what’s the revenue gap. Then you model scenarios: what happens if you bring those customers back to fair pricing, and how much churn can you absorb before it becomes unprofitable. In Navifleet’s case, the key principle was segmented price increments - no customer faced a disproportionate hike. Multiple small adjustments reflecting value delivered, rather than one big shock. This approach, combined with tailored communication, kept churn to a temporary one-month spike. When considering pricing changes, it's important to evaluate competitor pricing, set a competitive price, and understand cost plus pricing cost, but also recognize that these methods have limitations and should not replace a value-driven approach.

What is revenue engine diagnostics and why does it matter?

Revenue engine diagnostics is the first phase of our pricing methodology. We dig into internal data - MRR waterfall, churn patterns, customer segmentation, feature adoption, discounting policy, revenue concentration - to spot revenue leaks and hidden opportunities. For Navifleet, diagnostics revealed accumulated discounting and grandfathering patterns, plus machine learning analysis identified which feature combinations had the highest upsell potential. Without this step, you’re making pricing decisions based on gut feeling instead of data. It's also crucial to use pricing based on perceived value and to tailor strategies for different customer segments to maximize impact.

How do you reduce churn risk during a B2B SaaS price increase?

Three things: segmentation, modeling, and communication. For Navifleet, we identified ten distinct client groups, each with different risk profiles. We modeled churn scenarios for each segment to understand acceptable loss thresholds. Then we built a tailored communication strategy - different language, different channels, different contingency plans for each group. We also ran a workshop with the CSM team so they were prepared for every customer conversation. The result: a temporary churn increase for just one month before reverting to normal levels. The subscription pricing model is also helpful here, as it allows customers to pay at regular intervals, making price changes more manageable and predictable.

How do you redesign pricing and packaging for a complex B2B SaaS product?

When you have 15+ functionalities in a “choose your own module” system, you can’t just raise prices across the board. You need to understand which features customers actually use together, which ones have upsell potential, and which ones are table stakes. We used machine learning to analyze feature purchase combinations across Navifleet’s 1,500+ clients, then used those patterns to restructure the packaging around how customers actually buy - not how the product team organized the features. Incorporating paid plans, a freemium pricing model, and various SaaS pricing strategies can help serve both enterprise clients and different customer segments more effectively.

How long does it take for churn to stabilize after a price increase?

In Navifleet’s case, churn spiked for exactly one month and then returned to normal levels. This is a common pattern when the price increase is well-structured and well-communicated. The customers who were going to leave do so quickly - and the vast majority stay because the value justifies the new price. The key to fast stabilization is having a communication strategy that addresses concerns proactively, rather than waiting for customers to complain. Regular reviews and adjustments of your pricing ensure it remains relevant and competitive as customer needs and the market evolve.