Introduction

Sometimes a SaaS splits up their offerings into different products, each with a different pricing model. While making things a bit more complicated for customers, being able to have multiple products allows SaaS companies to tailor specific offerings for specific personas that are not interested in the features provided in the other parts of the business.

Overview

PROS
  • Tailor-made products for each customer persona
  • Bundling opportunities
CONS
  • Complexity may make it harder to sell
  • Harder to implement

Breakdown of the Pros

Tailor-made products for different market segments

When a business sells multiple products, each product is now able to target a specific market segment directly; for example, Atlassian is able to target a wide range of personas, developers with BitBucket, Project Managers with Jira.

Bundling opportunities

A customer looking for a specific product is in a perfect position to be upsold on additional offerings in the form of a discounted bundle. Companies may even create soft-dependencies between products where products integrate very closely together to unlock new functionality.


Breakdown of the Cons

Difficult to enter new markets

If a company tries to enter a new market with a new product, they will often find it is very difficult to gain a foothold in the already established market where competitors have been for a long time. It takes a lot of resources to enter this new market, and there if the product is not executed properly, they risk failure.

Difficult to manage

The difficulty involved with offering multiple products is especially true for smaller stage companies. These companies frequently do not have the resources needed to manage multiple products, as they often require entire teams dedicated to managing them.


WHO SHOULD USE IT

Companies could use multiple products if they meet any of the following criteria:

  • Their offerings are big enough to be split up into complete standalone products
  • The potential offering of products each can target a different customer segment
  • The company is established enough to develop a new product targeting a related, but different market

Implementation

In Stripe, there is already a product construct. To model this billing strategy just map each product you want to sell to a Stripe product.

The User Interface

In Stripe, there is already a product construct. To model this billing strategy just map each product you want to sell to a Stripe product.

SUBSCRIPTION MANAGEMENT
See Live Example

Examples

Own a Subscription SaaS Product?
Use the UI/UX Toolkit for Stripe Billing