Research Questions for Subscription Pricing

We explore what questions product owners ask when deciding subscription pricing for SaaS and subscription boxes.

Visiting the pricing page is an inevitable part of any buyer decision journey for SaaS and subscription services. At this point, visitors have already gone down the funnel and are curious about the value of your product. Now your pricing page has to fulfill its mission - to get visitors to make a purchase, subscribe to your service, or sign up for your free tier or free trial. If your pricing page isn’t well designed and confuses your visitors, you will lose potential revenue. Therefore, it is crucial that every single detail of your pricing page is well thought out.

Conjont.ly is on a mission to help you make better product and pricing decisions through research. As true researchers, we start by asking the right questions. Over the years of hearing those questions from our users on support calls and also running our own series of customer interview, we have created the below list of research question (RQs) for pricing page optimisation:

  • What is the best way to introduce plans?

    • How many plans are optimal to show on the pricing page?
    • What is the best way to name my plans?
  • Should there be a free tier?

    • How would my user base grow if a free tier were offered?
    • What is the rate of cannibalisation of the free tier if it were offered?
    • What is the opportunity cost if we do not offer a free tier?
    • How will offering a free tier affect customers’ willingness to pay in my subsequent tiers?
  • What is the optimal pricing strategy?

    • What should be the prices for each plan?
    • Will including or excluding tax on my pricing page work better if tax applies to my customers?
    • In which order should I show my plans? (Free to Premium or the other way round?)
    • Which pricing strategy should my business adopt?
      • Competitor based pricing
      • Penetration pricing strategy
      • Cost-Plus pricing
      • Value-based pricing
  • What is the ideal billing frequency for my customers?

    • Will annual billing or monthly billing, or both, work best for my business?
  • How should I allocate features into plans in my pricing page?
    • What features should I include in the free tier to maximise my user base?
    • What features should be allocated into the paid plans?
    • What are the most important N number of features?
    • How true are the must-haves?
    • What features are good to have but will not impact the decision-making process?
    • What features should be marketed as “add-ons”?
  • What is the best way to present features for different plans?
    • How many features can the buyer understand and consider fully in one pricing page?
    • How should I present technical features for my potential customers, who might not be well-versed in the technical details?
    • What is the ideal presentation format to use to communicate my plans effectively?

Questions about movement between tiers

  • What is the optimal strategy to encourage upward tier movement?

    • Should we introduce a limited time offer?
      • How long should the gap of limited time offers be?
    • What is the optimal trial period for users to understand my service’s value before converting to customers?
    • Should I provide my customers with the flexibility to transition between tiers seamlessly?
    • What kind of progression of tiers is likely?
    • What is going to happen to their pricing metric in the future?
  • What are the ideal pricing metrics for my business?

    • Number of users per month
    • Number of active users per month
    • Per usage
      • Number of projects per month
      • Viewer hours per month
      • Number of concurrent viewers
      • Number of channels/event pages
      • Number of emails sent per month
      • Number of contents uploaded per month
    • Number of features needed
    • Annual revenue

Feel free to get in touch with us if you would like to test out your pricing page prior to launching your product or services, or even if you think more RQs are needed on this page.


Written on 14 September 2021 by:
Nik Samoylov image
Nik Samoylov
Founder
Jason Widjaja image
Jason Widjaja
Management Consultant
Benjamin Tan image
Benjamin Tan
Market Researcher

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