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E132: When to Create New Tiers for Your B2B SaaS

by Sean Boyce

Creating new tiers for your B2B SaaS can offer your customers new valuable options and create more revenue generating opportunities for your business.  However, I want to talk about when the time is right to do this and it isn’t typically right out of the gate.

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Episode Transcript
 Hey folks, Sean here, and today what I want to talk to you about is when it’s time to introduce additional tiers or options that are priced differently into your B2B SaaS application. Now, I’ve talked a bit about when you’re getting started and you’re launching your B2B SaaS and keeping things simple.

I still think that’s very important. If you reduce the number of options that your customers have to choose from, it means they’re gonna move through your activation points faster. Something I always refer back to are examples of products, and I usually use D two C or products that are even simpler to visualize outside of the SaaS world, just for illustration purposes only.

But if you’re familiar with the mattress company, Casper, When they first launched that product and they were selling over the web D toc, which enabled you to skip going to the mattress store, when it was time to pick something new out, they launched with one product. They only had one mattress, which meant that.

Your selection anxiety just disappeared immediately because you only have one option. I still feel like that is the best way to launch a B2B SaaS application, as in there’s one price for one product. You don’t need to worry about which options do I choose yet, because in the beginning, what you’re trying to validate is whether or not they want to buy it at all.

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Are they gonna take the next step? Go from learning about what your product supposedly can do and how it can help them to actually using it and then paying for it. Now, if you’ve gotten past that point, you might be thinking, okay, well at some point, do I add new tiers with new options, and are they priced differently?

That answer can certainly be yes, if you’re having the kind of success that you were looking for with that original approach. By all means, feel free to continue with that because you can continue to be successful leveraging that. But if you start to get feedback from your users in terms of. What else they want, what they’re looking for in terms of additional features that potentially speaks to new opportunities, specifically in this area.

So that’s where I’m at with my podcasting product at the moment. Starting to get feedback about what else the tool can also do. Right now it’s just creating show notes. But what if it could help us writing articles or writing e emails or social media posts or whatever, right? So I’m gonna be working on extending the capabilities of that product.

But as I’m doing that, that’s expected to be providing my customers with more value, and I’m looking to capture some of that value as well. So for the product that’s going to go beyond what the initial set of features included, I’m looking to be creating new tiers for enabling them to elect some of those additional options as well.

Also, which is gonna continue to maximize both the revenue and the profit. Potential that my product is gonna be capable of generating, but I didn’t do that before. I had verified that people are going to be actively using, actively paying for, and actively getting value out of my product. That is an all important first step.

And the more you complicate that or make that confusing, the harder it is gonna be to verify that. So I think this is a really important sequential step, and once you get past the sequential step, that’s how I’d recommend you thinking about expanding from there into new tiers that could also create additional revenue and profitability opportunities for your B2B SaaS.