Pricing Strategies
License per User
The SaaS License per User Model charges customers based on the number of individual users who have access to the software. This straightforward pricing structure is based on per-seat licensing, where each user account represents a "seat."
TYPES OF SOFTWARE
Collaboration tools and office productivity software, such as Microsoft Office 365 and Google Workspace.
CRM systems, project management tools, and other enterprise applications where usage is closely tied to individual user accounts.
Specialized professional software that is used intensively by individuals, like design or analysis tools.
BENEFITS
Job Type
CHALLENGES
Barrier to Wider Adoption: Potential reluctance from businesses to add users due to direct cost implications.
Sharing Accounts: Risk of users sharing accounts to avoid additional charges, which can affect security and data integrity.
Inflexibility in Usage: Does not account for varying levels of use among users, which can make it less appealing to customers with diverse user engagement levels.
PSYCHOLOGICAL TACTICS
Volume Discounts: Encouraging larger commitments by offering discounts as the number of users increases.
Trial Periods for New Users: Allowing new users to try the service for free, aiming to convert them into regular, paid users.
Visibility of Individual Contributions: Highlighting the productivity or benefits each user gains from using the software to justify the per-user cost.
TESTING & FEEDBACK
User Feedback Sessions: Conducting regular feedback sessions to understand how the software meets individual needs and how it could be improved.
Analytics on User Engagement: Monitoring how each user interacts with the software to gather data on feature usage and overall engagement levels.
Pilot Programs: Implementing pilot programs with potential customers to see how the per-user pricing model fits within their operational budgets.
IMPLEMENTATION
Clear Communication of Pricing Tiers: Clearly detailing the cost per user and any additional charges or fees that might apply.
Flexible Account Management: Offering easy tools for adding or removing users, and adjusting billing cycles accordingly.
Support and Training: Providing robust support and training resources to ensure every user understands and can fully utilize the software.
BEST FOR
SaaS
FLEXIBILITY
Moderate
This model offers moderate flexibility and scalability. It's straightforward to add more users, but the per-user cost can be a limiting factor for large-scale deployment in cost-sensitive environments.
REAL-WORLD EXAMPLE
Adobe Creative Cloud for Teams is a notable example where businesses pay per user. Each user gets access to Adobe's suite of creative applications like Photoshop, Illustrator, and more. The model suits teams where each member requires access to the tools, and the company provides various management and collaboration features to enhance productivity and workflow.
View the collection of Pricing Workshops.