SaaS Packaging Fundamentals - Good, Better, Best

If you're looking to simplify your SaaS pricing, adopting a Good-Better-Best packaging strategy can streamline your sales process and increase revenue capture.

What is Good-Better-Best Packaging?

This strategy involves creating three clearly defined packages aimed at distinct customer segments:

• Good: Entry-level package covering core, essential features.

• Better: Middle-tier package for growing businesses, offering enhanced functionality.

• Best: Premium package with advanced features, targeted at enterprises or highly demanding customers.

  
  

Why This Strategy Works

• Sales velocity: Standardized options simplify buying decisions.

• Increased revenue capture: Clear gradation aligns pricing closely to customer willingness to pay.

• Reduced shelfware: Customers select packages aligned with their needs, minimizing wasted features.

  
  

Real-Life Examples

• Salesforce: Offers clear, distinct tiers targeted from SMB to enterprise.

• Amplitude: Transparent progression from free tiers to sophisticated enterprise options.

  
  

Common Pitfalls to Avoid

• Too little differentiation, causing customer confusion.

• Misalignment of features with segments, resulting in high shelfware.

• Insufficient market research, creating price points that feel arbitrary.

  
  

Practical Tip: Regularly validate your packages against actual customer usage and feedback to maintain relevance and customer satisfaction.