Product Catalog Organization Strategies for SaaS?
We presently have a product catalog model for a SaaS business model where we have one Product Rate Plan entry in our catalog for each billing frequency we offer (monthly, quaterly, annually, etc.). So each product has a set of 6-8 Rate Plan entries which differ only by frequency and corresponding default price.
We're exploring "flattening" the Rate Plans in our catalog such that there's only one Rate Plan for all billing frequencies, by changing our "Customize List Base Price" setting from existing value "Billing Period" to new value "month", re-stating our base prices in "per user, per month" units, and consolidating our existing Rate Plan data accordingly.
Can anyone speak to experience with this "one Rate Plan regardless of billing frequency" type of approach, especially moving to this approach from a different model?
Re: Product Catalog Organization Strategies for SaaS?
I know your post is from almost 3 years ago, but I'm curious if you did implement the changes to your product catalog and started using the price per month setting instead of a rate plan per specific bill period.
We definitely liked the idea of consolidating the product catalog. We were also hoping it would help reduce the number of Amendments on Amend/Renewal Quotes. At renewal time, customers are encouraged to change from Quarterly billing to Annual billing. That results in RemoveProduct and AddProduct amendments. Those can add up when you have a handful of recurring products.
When this option came out, some initial testing was done, but realized that each product's billing period needed to be selected when added to the Quote. Not a problem, but would require new work flows, validations, and training. Also, it didn't solve our hope to reduce the number of amendments on Amend/Renewal Quotes when changing billing periods from Quarter to Annual.
Those points and other business priorities, made it not worth changing the entire catalog at that time. However, I have always wondered if any customers were successful in changing their catalog and found the new structure useful. If you are able to share your results, I'd appreciate it.