Definition
Packaging is the structure of plans, limits, and feature bundles that customers can buy.
Why it matters
Great packaging makes value obvious, reduces choice overload, and aligns upgrades with customer growth.
Pricing implications
Packaging often moves revenue more than price changes. Poor bundles can push high-value users into low tiers.
Signals to watch
High downgrade rates, plan confusion tickets, and low conversion to higher tiers.
Design principles
Bundle around outcomes, separate by usage or team size, and make upgrade paths clear.
Checklist
- Define the target segment for each plan.
- Tie plan names to outcomes, not features.
- Use limits to separate tiers when features overlap.
- Keep core plans to three unless there is strong justification.
- Add a mid-tier that captures the most common use case.
- Track plan migration patterns quarterly.
- Validate packaging with sales and support feedback.
- Document the rationale for each tier.
Examples
- Starter for individuals, Team for collaboration, Scale for high usage.