Grant additional feature access to customers

Overview

Products, Subscriptions, Plans and Features are the most common entities in the SaaS pricing and packaging world, yet in the past years, the need for additional flexibility has arisen and new options were introduced.
This article will focus on two of them and will suggest common use cases for each one:

Add-ons

An add-on serves as a monetizable extension to an existing plan, offering customers the opportunity to enhance their service package without the necessity of upgrading to a higher-tier plan. Add-ons can be utilized in various ways, catering to diverse needs. Examples include:

• Getting access to new production functionality: Customers interested in features available only in higher-tier plans, such as SSO, can opt to add these features to their current plan without upgrading.
• Getting additional access to production functionality: For instance, if a plan includes 10 seats, a customer can purchase an add-on for an additional 5 seats at a specified price, thereby allowing a total of 15 team members access to the application.
• A combination of the above two: Add-ons can also bundle multiple features, offering customers a chance to explore and assess new functionalities. A specific example would be a “starter pack”, which is a basic set of features to allow customers to get started with the product at a lower cost.
• Credits: A unique offering representing a more complex cost structure that allows access to specific features, while not exposing the cost breakdown (see example here).

Tip: Make sure to choose descriptive names for your add-ons to clearly communicate their value.

Learn more about how add-ons can be configured in this article.

Promotional entitlements

Promotional entitlements can grant customers access to product functionality without needing to pay for it. Access can be grated for a limited amount of time, or indefinitely throughout the customer's lifecycle.
Adopting a generous strategy, customers receive the greater value between their original and the promotional entitlement.
Promotional entitlements can significantly enhance business growth and revenue through various strategies:

• Offering a trial in a finer granularity: Enables customers to experience the value of a certain feature, encouraging conversion without committing to a free trial.
• Increasing customer engagement: For example, by granting access to new functionalities as a gesture of appreciation or granting access to features in exchange for inviting additional users to the platform.
• Compensation: Offers a form of redress through a one-time promotional entitlement in response to customer dissatisfaction.

Read more about managing promotional entitlements in this article.

Comparing the options

Still uncertain about the best approach for your needs? Here’s a table summarizing the main differences between add-ons and promotional entitlements:

The bottom line

Add-ons and Promotional Entitlements offer expanded flexibility, enabling tailored support for various use cases. When deciding which option to apply, it's crucial to consider the specific needs of your customers and your business objectives. Should you have any questions or require further assistance, our Support team is readily available to help.