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We Use Freemium Valued-base Per Feature Pricing Model With Credit Option And Money Back Guarantee

Freemium Valued-base Per Feature Pricing Model

Freemium pricing: offering a free-to-use product, supplemented by additional paid packages. We use the freemium business model is a part of a tiered pricing strategy: the regularly paid packages are supplemented with a free, entry-level tier.

That tier is then limited across certain dimensions in order to encourage users to upgrade at a certain level of usage, typically employing feature-based (if you want X feature, you need a paid package), capacity-based (if you exceed your allowance, you'll need a paid package) or use-case (you can use the free package internally, but not for managing customers) limitations. We use mostly capacity-based model where resources, available to the customer is restricted with the certain package. A customer with the entry-level tier (free) has a full set of product and services offered by us but with the minimum resources. That capacity is quite enough to start their business and learn how the system works at all. While clients business grows, entry-level tier capacity becomes low and the client has to upgrade his package or (it is rather unique for SaaS market) buy the necessary type of resources separately.

Pros Of Freemium Part Pricing

It's a foot in the door. Initial adoption is one of the biggest challenges facing a SaaS business, and the freemium model makes it as easy as possible for customers to get started with our product.

Viral potential. With such low barriers to use come significant viral potential: we can grow so rapidly because of user referrals, as their existing users passed on the product to friends and colleagues.

Cons Of Freemium Pricing

They say that Freemium is a real revenue killer. Free users don’t generate any revenue for our company. This means that paid users need to generate enough revenue to support the cost of acquiring and serving all of your users - paid and free.

We fixed this model to decrease the influence of those minor issues. For example, to generate revenue from our free tier customers:

• we offer them upsales (cross sales) such as stock photos, texts, articles, SEO service, domains, etc.

• we generate revenue from ads, which appear on free tier websites and e-shops

• we get a fee from their customers' payment transactions

• we gather educational subscription charges and Market Place Fees

It's easier to churn on a free package. The more we pay for things, the more we value them. While a free-to-use version of our SaaS product makes widespread adoption simple, it also makes it easy for users to adopt a throwaway mentality, increasing churn as a result. To prevent them leave and decrease churn rate (which is the number of customers or subscribers who cut ties with our service) we modified a little classical freemium model:

• we give our customers as many opportunities as possible to spend their time to create web content, websites other essential things to them to increase the value of their account in their own eyes

• we provide them with educational amenity and learning materials such as webinars, Unovi University, online translation, newsletters etc

• we provide them with Market Place where customers and users can find each other and offer their own product and services to each other  (Freelance.com)

It can devalue your core service. Our product solves a lot of problems (many of them are painful and expensive) for free, our users have may resent having to eventually pay for the service.

• Freemium model presumes free access to all product for customers forever. So we do. We provide all of our newbee with free access to all features but, as we use value-based and per feature pricing model we do it in a special way. All features are accessible but with limited resources which is enough to start with and learn how to work with our system but it will be resourceless for growing business. From the other side, some advanced and premium features are only available in a sandbox regime with a free tier and they have full functionality with the appropriate paid plans. Thus we give to all of our customers the opportunity to work with a full set of products and services (freemium) and at the same time we don't devalue the system at all because we translate our clear vision to clients - "It is a powerful system with tremendous impact to your business and, yes, you can use it for free but while you are tiny, if you want to grow as we want, you have to pay as we do for our research and development that gives you such a system."

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Per feature, pricing separates out different pricing tiers according to the functionality available in each, with the higher priced packages associated with a greater number of available features or with more important ones. The primary differentiator between START, BUSINESS, ENTERPRISE and CORPORATE packages is the different range of features of each product on offer, with new functionality "unlocked" with each package upgrade while basic features are available with free tier plans.

Pros Of Per Feature Pricing

Strong upgrade incentive. Per feature pricing offers a clear and obvious motivation for upgrading: you unlock extra functionality. Compensate for delivery-heavy features. Some of our features require a disproportionate amount of resources to deliver - per feature pricing allows us to appropriately compensate, by putting these features into our top-tier packages.

Cons Of Per Feature Pricing

Difficult to get right. How do we know which features our users will want? Getting the balance wrong can discourage adoption, as crucial features end up in overpriced tiers, or the bulk of your product's benefit ends up in your cheapest package. Leaves a bad taste. It's easy to feel resentful with per feature pricing: you're paying a monthly fee to use a product, and still, you're missing out on some of their functionality. To dissolve these obvious disadvantages we use some special pricing rules:

• to prevent customers to feel resentful we give them access to all products and services features but some of those features (which are in the paid tier) work in sandbox mode customer can evaluate their usefulness but can't use outcome, to do that, users must upgrade their plan.

Value-based pricing works in stark contrast, using the perceived value of the product as the benchmark for price setting, instead of costs, competitors or target margins.

At its heart, value-based pricing encourages us to view our pricing strategy as a product of the value they provide. Instead of fixating on cost-cutting to improve profit, we focus on improving the service and value our products and services provided, using extensive research to understand how customers actually value a product.

Value-based pricing isn't a quick-win - it's a long-term change to how prices are fundamentally viewed - but if you're looking for a good starting point to transition to value-based pricing, check out the 10x Rule. In simple terms, it's the idea that the value your product provides should be ten times its price, providing a simple heuristic for framing your pricing decisions.

Credit Option

It’s quick and easy to apply for UNOVI Credit – all you need to do is complete a short application form and we’ll give you a decision instantly. If approved and you accept, you’ll have a credit limit attached to your UNOVI account to start using straightaway at all of product and services we provide.

Please note, UNOVI credit cannot be transferred from one currency into another. UNOVI credit will automatically apply by default to your next invoice. Before you get invoiced, you can select your preferred payment method and toggle your UNOVI credit on or off. When an invoice is due, your selected payment method is charged.

Money Back Guarantee

30 days money back guarantee for every option

All features are accessible without any plans and credit or debit cards details entered. You can use all of our products, build your web presence, work with any apps absolutely free forever. After you have decided to upgrade to one of our paid plans you have 30 days for money back guarantee. While you are on free tier there up to 0,3 Gb bandwidth, 20 MB Disk storage and free third-level domain are available to you.

Unovicom offers a 30-days money-back guarantee to first-time purchasers. If you’d like to cancel your Unovicom Paid account for any reason, just request a refund within the first 30 days of your subscription by submitting a help desk request.  As long as this is your first time using Paid, we will honour your request, no questions asked. The customer can't apply for Money Back Guarantee if using the UNOVI Credit as a payment method.

Psychological Pricing Tactics

Price Anchoring

On our pricing page, we draw attention to our most expensive package, even if most people don't buy it. Our top tier package becomes the visitor's price "anchor", making our other packages look more affordable in comparison. When up-selling or cross-selling, start by pitching our most expensive upgrade or add-on, before working down to our more "reasonably" priced options.

Charm Pricing

Charm pricing refers to the use of prices ending in the number nine. It's suggested that this psychological pricing strategy works because of the "Left Digit Effect". Our brains process numbers extremely quickly, making snap judgments about prices and values without any conscious awareness. When we see a $400 product, our brain latches on to the first number - the left digit - and creates an accurate, subconscious reference point of $400. But when we see a $399 product, that same Left Digit Effect creates an inaccurate reference point of $300.

Though we don't consciously believe we're buying a $300 product, charm pricing has been shown to significantly increase sales and conversion rates.

Pricing

Tools that scales with you

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→ X-Axis: Positioning (for whom this plan is - Target Audience). Aligning your product to attract the right customers. This is along the horizontal axis. Unovi is positioning itself to attract a wide range of possible customers, from small one-person shops all the way to big enterprises, and segments them by buyer persona. We are offering our product and services in B2C and B2B sectors

↑ Y-Axis: Packaging (what product and services are in this plan). Having the right feature mix in your plans. Different product and services have different value metric for customers and the company itself and how it separates different packaging options. This allows our customers to start small but grows over time.

Pricing: (The total product and services value customers paid). Finding the right price points and model that represent value for targeted customers and customers are willing to pay. The pricing on the page reflects the value metric (the number of product and services and their usefulness for the customers included in the plan). Unovi offers a free tier to convert interested customers, but then the pricing follows a logical pattern of more features and resources = more cost.