What are the key differences between SaaS pricing and consumer software pricing?

Specifically the differences in: objectives, unique challenges, processes and approaches, data and tools, and success metrics. Greatly appreciated your insights!

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2 Answers

Enterprise Product Marketing Pricing and Packaging

Sarah Din

Former SVP of Product Marketing at Quickbase • 4mo

This is a really nuanced question and honestly could be its own full session. But at a high level, the fundamental difference is that SaaS pricing is pricing a relationship and consumer software is pricing a moment in time. With SaaS you're optimizing for recurring revenue, expansion over time, and tying price to value metrics that scale with the customer (seats, usage, etc). Its never "done"...you're constantly revisiting it as your product evolves and your customers grow and the market shifts, ...Read More

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Lara McCaskill

Atlassian Senior Director, Head of Portfolio PMM, Strategy Collection | Formerly Amazon, Stitch Fix, Pandora • 2y

The biggest differences in SaaS pricing and consumer software pricing can be grouped into 3 key buckets: Discounting SaaS discounts based on volume - e.g. price per user typically goes down the more user seats you purchase. There is also room to negotiate the pricing based on volume, term length, or if the customer is already or also purchasing other products from the same vendor. Consumer software discounts typically come in the form of term length - e.g. the monthly cost goes down the more mon ...Read More

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