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SaaS Strategy Playbook Series: Launch Preparation (2/6)

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SaaS Strategy Playbook Series: Launch Preparation (2/6)

In our last blog we discussed about the one of the 4 strategies to be adopted by SaaS start-up for growth. In this blog we will discuss about the 2nd strategy which is “Launch Preparation”

Launch Preparation can be categorized into 3 categories:

  • Target Segment Identification
  • Pricing Strategy
  • Marketing Channel Identification


  1. Target Segment Identification

This step helps in understanding the needs and pain points of the customer to achieve right product fit. Following should be the focus while working on this category.

  1. Emphasize how your SaaS will help various user personas overcome barriers and solve their problem
  2. Create user personas from identified target audience for all the business roles that your product will cater to
  3. Identify your target audience’s pain points and the problems they face
  4. Imagine yourself as the consumer and go on their buying journey
  5. Speak with any existing contacts that you have, about the idea for their feedback
  6. Visit meetups and online discussions related to your product and its industry
  7. Identify locations online and subcultures offline where your target audience is likely to be found
  8. Reach out to competitor’s customers to find out what they like and don’t like


  1. Pricing Strategies

Pricing strategy play a big role in introducing and making your product to be used by the new customer. Best SaaS pricing strategies to adopt:

  1. Per user pricing: Pay different amounts basis no. of people using the service.

    • When to use: Small businesses can cut costs by limiting no of users while having all features
    • When not to use: Not a best option for large teams
  2. Tiered user pricing: No. of users increase in tiers/bands rather than single digits.

    • When to use: Cost effective model for large teams
    • When not to use: Does not work for Solopreneurs who need additional features and not users
  3.  Per storage user pricing: Tiered pricing used by cloud storage companies’ basis storage amount.

    • When to use: Encourages users to upgrade when they hit the limit
    • When not to use: Not relevant for non-storage SaaS products
  4. Feature based pricing: Tiered pricing basis services and upgrades available to users.

    • When to use: Tiers basis customer needs, if implemented correctly, guarantees huge success
    • When not to use: Lack of proper feature based segmentation can lead to heavy prospect losses
  5. Pay as you go: Pricing basis usage of the service.

    • When to use: Fit for customers with fluctuating service usage
    • When not to use: Difficult for customers to calculate likely costs as definite usage cannot be predicted
  6. Roll your own: Allows customers to customize their service package.

    • When to use: Customization is appealing to customers
    • When not to use: Complex to create a successful roll your own pricing tiers
  7. Freemium Model: Free Basic functionality but chargeable upgrades.

    • When to use: Increased customer adoption rates if the product has reached product/market fit
    • When not to use: Freemium can devalue a product’s core feature
  8. Flat rate pricing: Flat rate price for all upgraded services over freemium plan.

    • When to use: Higher customer adoption rates with flat rate pricing
    • When not to use: Difficult to devise same pricing for SMBs as well as LEs
  9. Free, Ad Supported: Free core product but included ads and deal for related products

    •  When to use: Higher adoption rate along with recurring revenue from ads
    • When not to use: Increased churn rate if ads are placed inappropriately or are irrelevant
  10. Pay per active user: Charges only basis active users and not the number of signed up users.

    • When to use: Increased adoption as companies see reduced risk due to active user pricing only
    • When not to use: Not well suited for SMBs as the teams are already small and number of active users will be more


  1. Marketing Channel Identification

Choosing the right marketing channel can substantially impact the growth of a SaaS start-up as it helps reaching the right audience at the right time. There are various strategies behind choosing the right marketing channel:

  • Bull’s Eye Framework
  • Identifying Quick Win Growth Channels
  • Finding Long Term Growth Channels


SaaS 2-2


SaaS 2-3


SaaS 2-4


Please find below the link of earlier blog in this series:

Product Development: