A B2B SaaS with ~3,400 paying accounts had a pricing model that had not been touched since launch. Three tiers with a flat per-seat price, no annual incentive, no real value differentiation — and management could feel it: average revenue per account (ARPA) had flatlined at $42/month for 18 straight months, even as the product added serious features customers used every day.
The numbers told a story the leadership already suspected. 78% of new signups chose the cheapest tier regardless of company size, because the upgrade offered no obvious jump in value. Less than 6% of accounts were on annual billing, so cash flow was lumpy and churn risk stayed perpetually front-month. The sales team had effectively become discount negotiators, because the published price and the price customers expected were out of sync with the value delivered.
Their instinct was "raise prices." We pushed back: raising prices in place would just steamroll relationships and train customers to shop around. The real unlock was repackaging — re-architecting what each tier meant so anchoring, value, and incentives did the work instead of a blunt price hike.
Novaboro ran a pricing engagement built on the client's own usage data, not guesswork. We segmented 12 months of account telemetry by feature adoption, seats, and churn — then rebuilt the model around observed value.
The whole rework — data analysis, packaging design, pricing model, migration plan, and go-to-market collaterals — shipped in five weeks, with A/B-validated price points before full launch.
| Metric | Before | After |
|---|---|---|
| Average revenue per account (ARPA) | $42/mo | $51/mo (+21%) |
| Accounts on annual billing | <6% | 31% |
| Signups on cheapest tier | 78% | 52% |
| Quarterly recurring revenue | baseline | +22% |
| Aggregate churn | baseline | −1.4 pts |
"We came in wanting 'raise prices' and left with an actual pricing architecture. Novaboro showed us which accounts were underpriced using our own data, then built the migration so carefully that next-quarter renewals barely blinked. Revenue went up 22% and churn went down — that combination was the whole story."
One quarter after launch, the business had grown revenue 22% with no net new customers added — the growth came entirely from repackaging and incentives:
The 22% top-line improvement was not a discount-driven blip. Because it came from packaging and value capture rather than higher list prices, it proved durable across the following two quarters. For the framework behind this work and the mistakes to avoid, see our SaaS pricing mistakes guide.
Novaboro's pricing engagements start from your own usage data — we'll model the revenue and churn impact before you change a single price. A five-week rework can move your ARPA the way it moved this client's.
Start a ProjectNovaboro is a software development and product intelligence firm that has delivered production systems — and pricing strategies — for more than 40 companies since 2018, with 98% client retention and 24/7 operational support.
Case reflects a representative engagement; client anonymized at request. Numbers shown where the client's billing data confirmed the change. Price points and configs summarized from their instrumented metrics.