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November 28, 2023

How B2B SaaS Brand “neuroflash” Sets Profitable Pricing

Frank Buckler

Co-Founder, Supra.tools

In today's competitive business landscape, pricing plays a pivotal role in determining a company's success. To stay ahead of the curve, businesses need to continually adapt and refine their pricing strategies. One way to achieve this is by leveraging evidence-based insights, as demonstrated in a recent case study featuring neuroflash, a SaaS service offering LLM-powered content generation. In this blog article, we'll delve into the details of neuroflash 's pricing transformation and explore how they utilized a unique approach to unlock new opportunities for their brand.

The Challenge

Neuroflash faced a common challenge in the business world – optimizing its pricing strategy to maximize both revenue and profit. They offered six distinct price packages for their services, each with varying features and price points. To identify the ideal pricing structure, neuroflash decided to leverage evidence-based insights through the implicit price intelligence method using Supra.Tools.

What we did

Neuroflash turned to a powerful pricing analysis platform, which allowed them to test different price points for their services. Here’s how it worked:

  1. Data Input: The process begins with entering the product name and description and uploading an image or logo. Additionally, they defined a mid-level price point – the expected price – for each service.

     

  2. Price Point Generation: The platform generated seven price points based on the expected price and differences in price points. This helped neuroflash explore various pricing scenarios.

     

  3. Testing: neuroflash tested these price points to understand customer preferences and demand elasticity for each product package by sending out a survey link to customers and prospects.
Pro Hack

The bestselling book „Pricing Intelligence“ has more on the topic and

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Study Outcomes

The pricing analysis yielded valuable insights for neuroflash. Here are some key takeaways from their case study:

  1. Optimal Pricing: For their free “Discover” product it was found that it generates a significant willingness to pay. The “basic” product had an optimal price close to its current pricing. However, other premium products had lower optimal prices, suggesting room for price adjustment.

  2. Non-Linearities: neuroflash discovered that at a certain price point, the demand drops enormously while after that plateauing. 

  3. Pricing Proposals: Armed with this data, neuroflash proposed a streamlined pricing strategy. They narrowed it down to three core packages – Discover, Power, and Premium, with additional Word Booster packages for the Power package. This simplified approach aimed to make pricing easier, more transparent and customer-friendly while increasing incentives to upgrade.
Pro Hack

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In-Market Results

During the study all major competitors jester.ai and copy.ai changed their pricing schemes and lowered pricing. This was then taking into account to transferred findings into an actual new pricing scheme.

This is what neuroflash concluded as results 5 month later.

  • Largely increase revenue per customer (ARPU)

  • Conversion from Free to Basic decreased surprisingly little as the basic price was raised and competitors newly discounted their products by 50%.  

  • More customers upgrade than before. More than 90% of middle package used (Power S) converted into the more expensive Pro package.

Conclusion

SaaS businesses can reliably measure the willingness to pay space of its prospects and with that safely and successfully improve conversion and profits. 

With supra.tools you have highly reliable results in days.

If you are unsure, you can either use our consultation service or our performance-based consulting.

Learn which price your target customers are willing to pay.

Start finding your profit-maximizing price in no-time and comparably “no costs” thru Implicit IntelligenceTM

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Pricing Optimizer - Supra.tools
Pro Hack

Today pioneers use the latest pricing survey tools that use Neuroscience + AI

Interested professionals can use some tools even for free and explore on its own

You can access supra tools free here.

Here is downloaded free here PDF

Newsletter:

Keep updated on the latest Pricing Insights know-how and do-how.

In my email newsletter “Pricing Insights” I cover the whole range of pricing insights solutions-from Garbor Granger to Conjoint, from NeuroPricing to Pricing Software Systems. I describe the application in various fields from new product pricing to promotion, from brand premium to feature pricing.

Keep up to date here.