How do you decide wether or not to charge for a new functionality(saas)? it improves productivity, but it also helps lower time to value for certain kinds of users. How do you weigh up the relative value of shorter time to value vs MRR?

B2b saas company (video maker for enterprise) premium pricing starter, standard & enterprise

Answer

3 Answers

Pricing and Packaging

Bhavika Thakkar

Microsoft Sr. Director of Product Marketing & Growth- Copilot | Formerly Adobe, GoDaddy, Xero • Jun 3

I’d decide based on whether the functionality is an activation unlock or a monetization lever. In my experience with PLG and B2B SaaS, if a feature materially lowers time-to-value — meaning it helps the user get to the “aha moment” faster, create their first asset, publish their first video, or prove value internally — I’d be very careful about charging for it too early. You don’t want to tax activation. Faster time-to-value can improve conversion, retention, expansion, and sales efficiency, so ...Read More

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Tamara Grominsky

Kajabi VP Product Marketing & Lifecycle • 3y

Whenever we launch a new product or feature, I make sure we're aligned on the core business metric we want to drive. Is this a churn reducer? A top of funnel acquisition play? An expansion or ARPU play? This should help to guide how you frame the opportunity. If you're torn between a few potential paths forward, I always suggest a quick back of envelope calculation to help size the opportunities. In this case - if you were to offer it to all customers for free, how much could you improve the ac ...Read More

2,220 Views
Sarah Din

Former SVP of Product Marketing at Quickbase • 7mo

Deciding whether to charge for a new feature usually comes down to one big question: is this thing creating net-new value, or is it making the core product easier and faster to use? In SaaS, especially B2B, both are valuable, but they don’t always justify price the same way. For a feature that improves productivity and shortens time to value, I try to look at the tradeoff like this: If the feature helps more users get successful faster, that often grows conversion and retention, which can easily ...Read More

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