Fynn GloverCo-Founder & CEO, Schematic · Co-founder & CEO of Schematic | Runtime monetization infrastructure for SaaS & AI companies

SaaS pricing strategy: The secret to entitlement program success

8 Aug 2024 · 1 min

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In this segment, the speaker explains the core ideas behind entitlement programs in SaaS pricing. He emphasizes two key aspects: first, moving entitlement logic out of the application code and into a business‑managed system, which enables rapid adjustments to feature access without redeploying code; second, handling enterprise exceptions by using feature flags and individualized targeting to override the default plan packaging. This approach lets companies add or remove features for specific customers on the fly, maintaining a clean codebase while offering flexible, customized pricing and feature bundles.

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Entitlements are pretty simple conceptually, but then how you implement that can be problematic. There's two aspects, I think, to any kind of entitlement program. Number one, by taking it out of the application code, you're now giving that to the business where you can be a lot more flexible. Somebody could hop into whatever you're using and just make those adjustments of how you target something. And suddenly this feature is now in that plan without any redeployments, any changes to the application code. But then the second thing is, is that once you establish, okay, here we have these set of pricing and packaging but you always are going to have exceptions, especially when you start selling to enterprises. You need to be able to kind of override the baseline packaging. And so feature flags allow you to do that. If you're on Plan A, you get, you know, these listed features, but I can also override that with like individualized targeting. Say if you're coming from this company, you know, you get access to this enterprise feature that wasn't in your plan.