I want to...
Grant additional feature access to customers
Discover how you can expand your customers access to your application using Add ons and Promotional entitlements
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).
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:| Aspect/Feature | Add-ons | Promotional Entitlements |
|---|---|---|
| Scope | One or multiple entitlements | One entitlement only |
| Access Level | Plan | Customer |
| Provisioning | (1) Via self-service from your application, (2) From the Stigg app, (3) Programmatically | (1) From the Stigg app, (2) Programmatically |
| Requires payment? | Yes | No |
| Access Period | According to the subscription billing cycle | Customizable |
| Programmatic Management | Yes | Yes |
| UI management | Yes | Yes |
| Shows on the invoice? | Yes | No |