Over the past six months, three of our SaaS marketing tool vendors significantly raised their prices. I was struck by how one company handled this tough communication well, and the other two did not.
It was obvious that the two company’s poorly-handled price increase messaging did not involve the marketing department. The emails had a sales-driven, “take it or leave it” attitude that left me feeling angry as an initial beta user of said tools. We took a chance on these companies, and are now being rewarded with a steep price tag and slap in the face.
Don’t get me wrong. As a business owner, I understand when a vendor needs to raise prices because they’re losing money on a customer or not making the project margins their board or investment firm requires.
But how about explaining the situation? Customers have empathy and maybe can come to a compromise. Don’t hold my data hostage and give me every reason to switch.
How marketing can assist with attuned messaging
Your marketing department can help sales in making sure communications are direct, but communicate empathetically. A message of “we understand this price increase is unexpected, but here’s what you’re getting in return and how we’ll work with you on payments…” goes a long way in keeping loyal customers.
And subscription loyalty is paramount to the success of all SaaS companies.
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