State of B2B SaaS Pricing in 2024

Growth is slower and harder than the zero interest rate environments of a few years ago.

• All of new revenue is being eroded more than in the past by churn
• Churn’s revenue impact is now at an all time high since we started tracking it in January 2019
• 30% higher than at its peak in the COVID boom times

Operators understand the importance of effective prices and B2B product packages and consider it essential.

• Over 94% of pricing leaders update pricing and packaging at least once per year
• Almost 40% update as often as once per quarter
• This shows it’s especially important to reevaluate your monetization strategy

If your monetization strategy is not a driving factor in your revenue growth strategy, you risk falling behind.

• Your monetization strategy can include various tactics such as refining value metrics and adjusting packaging
• The most sophisticated SaaS B2B leaders are using comprehensive research and customer-focused value strategies

There are three main pricing strategies dominating the market.

• Competitor pricing (38%), utilizes competitor prices as a benchmark
• Value-based pricing (33%), bases  a product or service's price on how much the target consumer believes it is worth
• Cost-plus pricing (30%), is the most basic form of pricing: selling something for more than its cost price

A third of B2B leaders have made changes to their packaging since September 2022.

• The good-better-best packaging model has dominated packaging strategies used by B2B (40.8%)
• Smaller start ups are more likely to keep it to three tier good-better-best packages