Stigg launches to help SaaS companies with different pricing and feature packaging

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A recent report commissioned by Paddle, a payment infrastructure company, identified agile pricing as one of the key ways SaaS companies can improve their bottom line. Experimenting with different pricing models helps businesses find the right markup and determine the true value of their product, making sure they aren’t undercharging.

Ultimately, there is no one-size-fits-all SaaS business model. Usage-based pricing (UBP) is an increasingly popular proposition as it allows businesses to simply pay for what they use. But it’s not always easy to establish a “unit price” that will be charged under UBP, especially for more nuanced products with many different features and functions, in which case a monthly subscription may make more sense.

Within all that confusion about which model works best, questions linger about how much to charge, what features to bundle under each price point, and how best to get the data to inform all of these decisions.

Prices and packaging

This is something the fledgling startup Stigg aims to solve by providing the tools needed to fine-tune the pricing and packaging of features within SaaS software.

Founded in Tel Aviv, Israel, last June by two former New Relic executives, Stigg is emerging from stealth today with $6.4 million in seed funding as it looks to further iterate its product through an initial early access program.

At the heart of the Stigg platform is the idea that the SaaS pricing problem is “rooted in code, not billing,” as the company puts it. This means Stigg is targeting developers with an easy-to-integrate API that decouples pricing from the billing process.

“We firmly believe that the pricing problem starts with the code, and that in a modern go-to-market environment, pricing and monetization is the craft of product and growth teams now grappling with increasingly complex pricing models and myriad pricing models. to support. and packaging iterations,” Stigg co-founder and CEO Dor Sasson told VentureBeat. “Stigg unlocks the ability to introduce any buying experience without ongoing developer support.”

Stigg: Edit permissions for multiple SaaS product plans

Through Stigg, customers can experiment with different prices and feature bundles; get granular usage perception in their product; repeat with feature limits and free trials; fiddling with different measured pricing models; manage alerts to notify users of their free trial status; and automatically keep the website’s pricing page updated as the company A/B tests different pricing and packaging combinations.

And at the heart of it all is data, which helps companies determine how much of their product’s value they can give away for free, and at what point to start charging.

“Finding value-based pricing is a data-driven mission — it can’t be accomplished without the right infrastructure to support it,” Sasson said. “Introducing freemium, self-service, or even free trials into your customer’s buying experience requires iteration. It should not be a one-off effort – it is a continuous optimization process, based on relevant data and automation.”

Stigg: Feature Access Data

In addition to the core API, Stigg offers server and client SDKs (software development kits) for the most popular environments and frameworks, and comes with pre-built integrations for CRM tools, subscription management and billing platforms, data pipelines, customer support, and more.

“Basically, this means that any change made through Stigg will seamlessly penetrate all the major buttons in a modern GTM (go-to-market) stack,” Sasson said.

Open for business

A quick look at the SaaS pricing landscape reveals a flurry of activity lately, with the likes of Metronome and M3ter sneakily launching in February with more than $50 million in funding to serve as infrastructure for usage-based pricing. Elsewhere, Subskribe launched its adaptive quote and billing platform, backed by $18.4 million in funding; subscription management and recurring billing platform Chargebee hit a high of $3.5 billion thanks to a $250 million fundraising campaign; and subscription management giant Zuora raised $400 million in new funding.

While Stigg certainly works with many of these incumbents young and old, the company is approaching things from a more holistic perspective in a market category that is constantly evolving — and Sasson says it’s more likely to be a mixture of in-house tools jumbled together messily. .

“Stigg is not so much competing with other companies as with in-house developers who spend far too many painful hours building and maintaining platforms in-house,” explains Sasson. “These platforms are typically designed through hard-coded access control controls and by stitching together different tools and applications, which fall apart as the business grows and scales.”

Stigg’s starting round included investments from Unusual Ventures, Emerge Ventures and a host of angel investors from companies such as New Relic, Calendly and Snowflake. The company’s early access program is now open to early access applicants.

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