How does Sellforte's pricing work?
January 12, 2023 | Carmen Bozga, Paul Arpikari
Sellforte's pricing starts at 490 € per month and can range up to 250 000€ per month for global solutions.
Although that is a sizable range of variation, we will explain why and how MMM SaaS solution pricing functions in the following chapters. We will also walk you through:
- The old way the industry used to price MMM
- Value-based pricing
- How value is created with MMM
Pricing methods we didn't choose
There are other ways to price MMM SaaS or various MMM services. We wanted to give you an overview of other pricing methods we have seen during the way as you might encounter these also when looking for a MMM solution
- MMM projects: Usually performed by a consultancy agency as a one-time project. These projects have a start and ending including x amount of hours and hourly fee based on the consultant's experience.
- Pricing per model: This method is already much further in customer-centric pricing. It's good if you have a simple business and simple marketing strategy since this requires quite a little expertise due to model simplicity
- Pricing per an insight: This pricing strategy has a good intention to bill for insights, but might be impossible due to the rather subjective definitions of what is an insight.
Chosen method: value-based pricing
Value-based pricing sets prices primarily according to the perceived or estimated value of a product to the customer rather than according to the cost of the product. This lets multiple different types of customers enjoy the product at a price level that takes into account their unique situation and the value they get from the product.
This pricing method was chosen at Sellforte since, in our opinion, customers view MMM SaaS solutions more in terms of the value the platform can give to their business than wanting to pay for the modeling work itself.
Since we know the value of MMM lies in media investments, it’s the most natural way the base the pricing on it. Whether your annual media budget is 300 000 € or 100 million € the impact is percentage-wise pretty much the same if there is only some complexity to be optimized.
Guidelines for pricing
Throughout the years, we have seen and tested different types of pricing methods, but this media investment-related pricing has been by far the most accepted by our customers since it’s easy to test and scale.
When we set up the actual price levels, we are following two simple guidelines:
- Customer value vs Sellforte price should always be 10x or more
- Pricing should take into account the customer’s unique situation
Comparing Digital, Growth and Enterprise products' pricing
Sellforte has decided to serve the market with three acknowledged segments and packages: Digital, Growth & Enterprise. This helps companies to find easier a solution closest to their business and marketing strategy. Those products have little bit different pricing methods, so we'll sort out the differences here:
”Digital” can be seen as the self-serve product from Sellforte's selection that does not require too much manual work, data can be fetched through data connectors and it can be 100 % automated. Thus, no onboarding fees and only a monthly fee.
The subscription payment can be made on a monthly or yearly basis. Digital MMM is ideal for eCommerce companies investing in digital media that aim to understand the ROI of their marketing investments, as well as to plan scenarios for optimal media investment allocation.
“Growth” is tailored for eCommerce businesses that are already a bit bigger in terms of sales and media usage. Typically they have chosen to use also offline media to find new customers and to build the brand.
Bringing offline media into the modeling creates slowness and manual work. Thus, Growth product pricing has two parts: small onboarding fee + monthly fee. An onboarding fee is needed since manual work kicks in, but by following a standard template for data delivery it's possible to keep your costs down.
"Enterprise" product is meant for companies that have more than one sales channel and KPIs to measure. They are using offline and online media channels in their campaigns.
The Enterprise modeling offers complex, multi-sales channel, multi-product category modeling with industry-specific external data sets, brand KPI modeling, and continuous service and recommendations from Customer Success Manager.
This product typically consists of custom data sources, data cleaning and a longer model setup. Thus, an onboarding fee + monthly fee model is the pricing method.
Pricing page and business impact
On the pricing page sellforte.com/pricing you can use the toggle bars to test out what kind of impact the MMM tool can bring to your business.
The main driving factor of our pricing calculation is monthly media investment. Namely, the more a client invests in media, the higher the price is and the bigger the business impact will be.
Together with our clients, we have observed that MMM SaaS provides businesses value that is typically 10 times greater than the cost of the solution itself.
Why you don’t want to save with your MMM provider?
Marketing mix modeling, particularly a SaaS solution where you only provide your own data, is ultimately an analytics product, a decision tool for hundreds of thousands, if not millions, of investments, and extremely vulnerable to bad data and a sloppy setup.
Making poor decisions can cost you a lot of money so expertise and focus the topic can actually save you a lot of money. To help protect against this, it is important to invest in a well-designed analytics product.
If you would like to know more about MMM and value vs price, please reach out to us or go to sellforte.com/pricing to explore more
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