We recently redesigned our pricing structure to ensure that our customers were getting exactly what they want at a price that works for them. Previously we had three main bundles our customers could choose from: Starter, Enterprise and Unlimited. Each bundle provided a bit more than the one below it. These offerings worked early on with our product, but as our product functionality expanded and we developed new features that were offered as add-ons, things started to get a bit more complicated. It was then we started realizing that our pricing structure was no longer the best for our customers, so we decided to revampit.
Old PricingStructure
Our previous pricing strategy was like an all-you-can-eat buffet. You could pay a flat price per person for access to the entire buffet and if you wanted the lobster tails you could pay a little extra. For some folks this was great. They are really hungry and like to have lots of food to choose from and want the lobster so are willing to pay extra. But what about the folks that aren’t so hungry and don’t want to pay that full price? They could choose one of the lower priced buffet offerings. But what if they wanted access to the crepe station and that only came with the full-price buffet package? You can see how this started to get a bit confusing and why we needed tochange.
New PricingStructure
Our newpricing strategycombines the buffet pricing with an à la carte type of offering. Many of our competitors use this à la carte type of pricing. We could have just gone à la carte all the way, but we wanted to make sure we met the needs of all ourcustomers.
Remember, for many of our customers, our buffet offerings work well. If they had to purchase each of the features in one of our bundles separately, the price would be exorbitant. One of the major changes we made to our bundle offerings was to get rid of the Starter Package. Our Starter Package was very limited in that it only allowed customers to create one security policy and didn’t give them the ability to create custom reports. We realized that our base offering should simply beSingle Sign On (SSO), a cloud directory that allows you to sync with a single Active Directory if necessary but enables unlimited connections to applications and does not limit functionality like creating custom reports. At $2 per person, this provides a robust foundation for most customers to start from. Our Advanced Bundle offering includes our core cloud directory and SSO functionality as well as Advanced Directory options like syncing with unlimited Active Directory or LDAP directories andMulti-Factor Authentication (MFA). If customers were to purchase these three components separately (SSO, Advanced Directory and MFA), it would be $6 per user. But with the Advanced bundle offering, they can get all three for $4 per user. For customers who want SSO, Advanced Directory, MFA plus our Identity Lifecycle Management and HR Driven Provisioning features to enable automatic onboarding and offboarding capabilities, we have our Professional Bundle. Those that go with the Professional Bundle pay only $8 per user vs paying $12 per user if they had to purchase each feature separately. Our bundle offerings still give our customers the most value for theirbudget.
For those who don’t want or need all the features in the bundles, they can now pay for just what they want. With the à la carte pricing, a customer that just needs a cloud RADIUS solution can simply purchase SSO and RADIUS together for $4 per person without having to worry about any features they don’t need. Now customers can pick and choose what they want without having to pay for what they won’t use. If their needs change from year to year we find ways to adjust asnecessary.
As the #1 value leader in identity and access management, our goal is always to provide the best value and service to our customers. Our new pricing structure is designed to do just that — give our customers a break in price when they purchase bundles, but also give them the flexibility to purchase only what they need whennecessary.
About the Author
Alicia Townsend
About the Author
For almost 40 years, Alicia Townsend has been working with technology as both a consultant and a trainer. She has a passion for empowering others to use technology to make their lives easier. As Director of Content and Documentation at OneLogin, Ms. Townsend works with technical writers, trainers and content marketing writers to inspire and empower everyone to take advantage of what OneLogin’s platform has to offer them.
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