Pricing Segmentation
Segment pricing by customer type without breaking your plan structure.
Quick checklist
- Define 2-3 primary segments (SMB, mid-market, enterprise).
- Keep one core value metric across segments.
- Use tier limits to separate segments.
- Model ARPA targets per segment.
- Avoid custom pricing for every deal.
Step-by-step
- Map segments to their usage ranges.
- Define tier limits and upgrade triggers.
- Set price bands by segment ARPA.
- Add enterprise minimums if needed.
- Track conversion and churn by segment.
What to watch
- Too many segments create pricing chaos.
- Misaligned tiers drive downgrade pressure.
- Weak Pro tier reduces expansion.
Common mistakes
- Mixing segment labels with tier labels.
- Overusing discounts instead of segmentation.
- Ignoring support cost differences.
