B2B SaaS Pricing Transparency: How to Boost Trust Among Stakeholders

March 23, 2024
Natalie Thorburn

 

The B2B SaaS industry is highly competitive, and pricing transparency is pivotal to business success. Customers are attracted to companies that are open with their pricing structure. Not only does it allow them to make informed buying decisions; but it also creates trust and loyalty.

Sadly, some companies still tell potential customers to request a quote, instead of being upfront with the price. The process isn’t even straightforward because the designated sales reps end up asking a series of questions that may turn you off.

No one wants to waste time trying to find a piece of information as simple as pricing. That’s why I’ve dedicated this blog post to help you navigate pricing transparency best practices for B2B SaaS companies and how they can boost trust among stakeholders.

1. Provide Clarity Around Your Pricing Model

Oftentimes, B2B pricing is surrounded by hidden fees and vague terminology. But transparent pricing begins with eliminating complexities in your pricing model that can breed mistrust among stakeholders.

Because the market is competitive, startups need to have a well-documented sales strategy so they can develop the right pricing model. The steps explained in the Attrock expert guide will come in handy when creating a SaaS startup sales strategy.

After you've decided on the pricing model, you need to create a pricing page that breaks down the pricing components in an easy-to-digest manner. Also, it should clearly define terms, state the base price and what’s included in it, and mention any additional costs that may arise.

You can use charts or summaries to ensure that customers understand your pricing structure. Freshworks is an example of a B2B SaaS company that’s clear about its pricing structure, including fees for add-ons and information about free trials.

Image via Freshworks

2. Enable Accurate Budget Planning and Forecasting

Unforeseen expenses are a primary challenge for businesses that use B2B SaaS solutions. The slightest discrepancy between the expected and actual cost due to unclear pricing can disrupt budgetary projections.

Your B2B SaaS company can implement interactive budgeting tools into its transparency practices. These tools allow stakeholders to check out how different pricing scenarios can impact their budget in real time.

HubSpot has a pricing calculator on its pricing page. For instance, if you want to purchase the company’s marketing product, you can choose a pricing tier, and then input the number of contacts you want to have.

The calculator shows you how much you’ll spend monthly and the amount you’ll save if you pay upfront. This simple tool enables stakeholders to tailor their spending to their unique needs and constraints.

Image via HubSpot

3. Offer Flexible, Scalable Options

You can promote trust among stakeholders by offering flexible plans and pricing that scales up or down, depending on the needs of customers. One such way to achieve this is by offering a usage-based pricing model.

Research shows that 46% of SaaS companies are either testing usage-based pricing or offering it alongside their traditional pricing models. A usage-based model allows customers to pay for the exact value they received from your SaaS product.

Customers prefer this model because it allows them to remove or add features when necessary. Subscription management software can help you to provide this level of personalized billing to customers. You can read the Younium guide to find out more features to consider when selecting a subscription management software.

Slack is a prominent example of a B2B SaaS company that has successfully implemented usage-based pricing. Paying customers are billed based on the number of active users in the workspace. Also, the company clearly states that if you add a new member part-way through your billing period, you’ll only pay for the time used.

Image via Slack

4. Encourage Continuous Open Dialogue

Conversations around B2B SaaS pricing shouldn’t end once a customer purchases. You need to do regular check-ins and gather reviews to find out whether your pricing structure aligns with the evolving needs of your customers.

This dialogue can help you identify areas that require modification to address shifting priorities, especially for customers whose businesses are in the growth phase. The more you engage with stakeholders, the more trust deepens on both sides.

For instance, Mailtrap, an emailing platform was completely free from its inception in 2011. However, after interviewing customers in 2015, 2018, and 2023, they have been able to utilize the data in launching six befitting pricing tiers for customers.

Also, the company has increased its price twice and has remained honest when communicating changes with customers. Still, its monthly recurring revenue has remained steady.

Image via Mailtrap

Conclusion

Ultimately, B2B SaaS pricing transparency fosters trust among stakeholders. Your customers need clarity around costs so they can make smart buying decisions within the limits of their budgets.

Hence the need to create a detailed pricing page, enable budget planning, offer scalable plans, and encourage open dialogue with customers. When your company is upfront about its fee structures, it signals an honest, customer-first approach.

 

Author Bio - Reena Aggarwal

Reena is Director of Operations and Sales at Attrock, a result-driven digital marketing company. With 10+ years of sales and operations experience in the field of e-commerce and digital marketing, she is quite an industry expert. She is a people person and considers the human resources as the most valuable asset of a company. In her free time, you would find her spending quality time with her brilliant, almost teenage daughter and watching her grow in this digital, fast-paced era.

Social connects: LinkedIn, Twitter

 

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