Design pricing metrics for growth in package One of the most powerful ways to improve NRR is to have a way to grow revenues in package without having to upsell or cross-sell. Pricing should be designed to make it easy to grow in package. One of the best ways to do this is with some form of usage metric. This is why hybrid pricing models are becoming more popular, and one can see in the survey that companies with more than one pricing metric perform be琀琀er than companies with just one metric, especially when that metric is the popular ‘per user’ metric. Improving NRR should be a design goal for any SaaS pricing design. Design packaging to encourage upsell One can only pull the upsell lever if there is an upsell path. Looking at the ten common SaaS packaging pa琀琀erns above, upsell is only possible in the Pla琀昀orm + Extensions, Menu Op琀椀ons, and Tiered (Good Be琀琀er Best) pa琀琀erns. This is one reason for the growing popularity of both GGB packaging designs. The Pla琀昀orm plus Extensions pa琀琀ern also provides a powerful way to enable upselling. The Menu Op琀椀ons pa琀琀ern is not as widely adopted in SaaS but also gives powerful ways to frame upsell. One can move customers from less expensive menu op琀椀ons to more expensive op琀椀ons (assuming they will get commensurate value) thereby increasing NRR. Figure 2: Ten Common SaaS Packaging Pa琀琀erns PeakSpan & Ibbaka Net Revenue Reten琀椀on Research Report September 2023 10