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Tiered pricing is one of the most familiar billing strategies used by companies today. It’s a method where companies limit or expand their offering based on pre-defined tiers. The model has a wide range of applications and is best suited to selling services, features, licences, etc. Not only do tiers attract different target audiences, but they uniquely position you to upsell to customers as their loyalty grows.

This pricing model also allows for flexible pricing and a customer-centric approach. Your team will need to segment desired customers into personas and build tiers to attract each one. The key to succeeding is accurately matching your price points to the value offered by each tier.