Have you ever wondered how Nordic SaaS companies figure out what to charge for their cool apps and services?
It's like a big puzzle, and the "State of Nordic SaaS Pricing" report has put the pieces together.
We've teamed up with the experts at SaaSiest and checked out pricing details from lots of companies – over 1,500! We peeked at everything: from their cheapest offers to the fanciest packages and all the cool features in between.
If you're curious about the smart moves these companies are making to earn more and grow, stick around. We've got some great insights to share.
Ready to jump in? Learn more, or download the report straight away.
About the Methodology
The report's methodology entailed an analysis of over 1,500 SaaS companies across five Nordic countries. The data was compiled by Valueships and SaaSiest, scrutinizing 1,700 active pricing pages. Company sizes were determined using LinkedIn metrics.
Industry classification was aligned with G2's standards, with non-G2-listed companies categorized by analogy. Pricing information was manually collected from websites and vetted by SaaS experts.
The focus was on discerning market patterns and setting benchmarks, rather than exhaustive coverage, allowing for the exclusion of data outliers and LinkedIn inaccuracies.
TL;DR
- The Nordic SaaS market began its upward trajectory in 2008, hitting a significant boom between 2015 and 2017.
- More than half of the market share in the Nordics is comprised of five main categories: Vertical Industry, Marketing, Enterprise Resource Planning (ERP), Human Resources (HR), and Information Technology (IT).
- A larger company size is associated with a less pronounced role of marketing and sales within its departmental structure.
- The Euro (EUR) is the most frequently displayed currency to users, suggesting a stronger focus on the European Union market as opposed to the United States market for Nordic SaaS companies.
- Just over half (53.84%) of Nordic SaaS offerings include a dedicated pricing page.
- The average number of pricing plans offered is above 2.5, but the recommended average is higher, at 3.5.
- The common price points for SaaS offerings on pricing pages are 107, 184, and 285 USD.
- Custom plans are common, there's generally no free tier, and the ability to expand service through add-ons is often associated with higher price points.
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Four Takeaways
#1 No Pricing Page on a Company's Website = Missed Opportunity
The reasons why it's a missed opportunity are:
- The pricing page is typically the second or third most visited page, depending on the industry, indicating its high relevance to site visitors.
- A pricing page is an ideal location to demonstrate the value of a product or service, which can increase the customer's willingness to pay.
- Traffic to the pricing page can serve as a metric for gauging actual interest in the product or service.
The research shows that 53.8% of products have a pricing page on their website, while 46.2% do not. This suggests that almost half of the companies are not utilizing their pricing page to its full potential.
#2 Lack of “Most Popular” Plans Hinder Conversion
A significant 74% of companies do not specify which of their plans provides the most value, potentially leaving a substantial amount of Monthly Recurring Revenue (MRR) unclaimed.
Only 25.6% of companies prompt customers to select a plan that is highlighted as "the" plan or "most popular," which can guide customer decision-making and potentially improve conversion rates and shorten the sales cycle.
According to case studies, indicating the "most popular" plan can positively impact conversion rates and sales cycle duration.
We can discern the following information about pricing for the average Nordic SaaS company:
- The average price of the least expensive plan is $174.75.
- The average price across all plans is $339.17.
- The average price of the most expensive plan is $558.47.
#3 The More Plans, the Higher Price Difference
The report also offers a comparison of the average prices for SaaS plans, detailed as follows:
- The average price of the cheapest plan is consistently $127 across different numbers of pricing plans offered (1, 2, 3, 4, and 4+ plans).
- The average price of all plans together shows variability with the number of plans offered: $196 for companies with 2 plans, $229 for those with 3 plans, $401 for those with 4 plans, and $252 for those with more than 4 plans.
- The average price of the most expensive plan also varies, increasing with the number of plans offered: $287 for companies with 2 plans, $357 for those with 3 plans, and peaking at $667 for those with 4 plans. For companies offering more than 4 plans, the most expensive plan averages $252.
#4 Freemium is Used Only by 25% SaaS companies in Nordic
The report also highlights that the freemium model is offered by around one-fourth of all companies and notes that offering a freemium model automatically decreases the perceived value of the product.
The line graph compares the price ranges of the cheapest and most expensive plans for companies with and without a freemium model:
Companies with no freemium model generally set higher prices for both their cheapest and most expensive plans across the 25th, 50th (median), and 75th percentiles.
Companies with a freemium model tend to have a lower pricing structure for both their cheapest and most expensive plans.
Companies that offer a freemium model charge less overall, but the most significant price difference is seen in the most expensive plans, suggesting that these companies want to maintain a low barrier of entry.
Although freemium models can make it easier to get users, they may also make people less willing to pay, since free stuff isn't always perceived as valuable.
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What ELSE can you expect from the report?
- Pricing strategies of Nordic B2B SaaS companies.
- Insights from analyzing 1700 pricing pages can be used to determine your pricing strategy.
- How many plans should you have on your pricing page?
- This analysis will allow you to gain a thorough understanding of price lists, plan options, currencies, add-ons, plan durations, and user-based pricing.
- The knowledge gained will allow you to understand which industries Nordic SaaS companies serve, how many employees they have, and potential growth areas.
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