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Case study
Simplified Pricing and Packaging for a Property / Tenant Management SaaS
How a SaaS provider increased revenue by 25% with a streamlined two-tier model
About the project
A European property and tenant management SaaS provider faced challenges with a complex product structure and pricing model. Their goal was to increase Annual Recurring Revenue (ARR) and simplify both product marketing and pricing, so customers could understand and adopt the solution more easily.
The challenge
- Diverse user types made pricing and packaging complex and hard to manage.
- 25% of users were not billed, leaving revenue on the table.
- 30 individual modules created long sales cycles and overwhelmed customers with too many choices.
- Pricing model issues: brackets for housing units caused revenue loss when customers merged but stayed within the same bracket.
The solution
Three strategic moves.
Action
Impact
Packaged into two tiers based on segmented customer needs
Simplified decision-making and reduced complexity for customers.
Limited modules for special needs
Kept flexibility for unique customer requirements.
Simplified the pricing model to two metrics: users and price per housing unit
Removed brackets, so revenue grows even when customers merge.
Validation
The new model was validated through several steps:
- Analysis of user billing data, which identified the 25% of unbilled users.
- Customer feedback on the simplified packaging and pricing structure.
- Testing of the new pricing model against customer needs and market expectations.
The results
Metric
Result
Revenue from unbilled users
10% increase (some free users cancelled, as expected)
Simplified go-to-market
Easier communication and faster customer decisions
Price increase
Additional 15% from the updated model and levels
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