🌐 Website
This playbook requires the following signals:
Monitored Signals
1. Why should I care about a new add-on?
Here’s why it’s a big deal:
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2. Examples of new add-on services
This is a common strategy for SaaS companies to expand revenue from existing customers. It allows them to test the market's willingness to pay for new, specialized functionality without disrupting their core pricing tiers.
For instance, a marketing automation platform might offer social media scheduling as a core feature in all its plans. They could then launch a new, paid "Advanced Social Analytics" package as an add-on for an extra $20/month. This allows them to capture more revenue from their power users and agencies who need deeper reporting, without increasing the base price for every customer.
3. How to monitor competitors for new add-ons
A new add-on is a public change, but it can appear in multiple places. You need a system to detect these new purchase options as soon as they are launched.
Zimt is the go-to competitor monitoring tool for B2B SaaS companies. We have over 35 competitor playbooks you can launch on autopilot, including one designed specifically for this scenario. Activating the playbook allows you to:
Monitor Pricing & Product Pages: Automatically track competitor pricing pages for new sections, purchase options, or mentions of new add-ons.
Track Product Announcements: Monitor competitor blogs and "What's New" pages for announcements and details about new paid add-on services.
Access This Playbook: Put this playbook, and many more, to work. Automated.
If you're not using Zimt, you must manually check competitor websites and blogs to catch these new monetization efforts.
4. Playbook Response Options
4.1 Frame it as a "Hidden Cost" and Emphasize Your All-Inclusive Plan
ⓘ Best for: When you already offer the feature included in your core plans and can position the competitor's add-on as an unfair "extra fee." | ||
Goal: Attract customers by highlighting the simplicity, predictability, and superior value of your all-in-one pricing. | ||
Strategic Rationale: This leverages the negative perception of being "nickeled and dimed." You position your offering as the transparent, customer-friendly choice, which is a powerful message against complex, à la carte pricing. |
Launch a "no hidden fees" marketing campaign.
Develop a campaign with messaging that focuses on the value of all-inclusive pricing, such as "Get everything you need in one simple plan" or "No add-ons, no surprises."
Create a TCO (Total Cost of Ownership) comparison asset.
Build a simple calculator or datasheet that shows prospects the true cost of the competitor's solution once their new add-on is included, compared to your straightforward price.
Update sales battle cards with questions about add-on costs.
Arm the sales team with questions like, "What will your total monthly cost be from [Competitor] once you include the add-on for [Feature]? Our plan includes that for one price."
Gather testimonials praising your simple pricing.
Launch a campaign to source and promote quotes from customers who specifically praise the simplicity and predictability of your pricing model.
4.2 Offer a Competing, Superior Add-on
ⓘ Best for: When the competitor's add-on addresses a real market need that you don't currently serve, but you believe you can build and launch a better version relatively quickly. | ||
Goal: Compete directly on the new feature by launching a superior alternative, either as your own add-on or as a new feature in your plans. | ||
Strategic Rationale: This is a direct product response that acknowledges the market opportunity the competitor has identified. By creating a better solution, you can neutralize their advantage and potentially create a new revenue stream for yourself. |
1. Analyze the competitor's add-on for weaknesses.
"Secret shop" or get a demo of the competitor's new add-on to identify its limitations. Is it poorly integrated? Does it lack key functionality?
2. Scope the MVP for your own version of the feature.
Define the minimum feature set required for your version to be superior to the competitor's, focusing on addressing the weaknesses you identified.
3. Decide on your packaging strategy.
Determine if you will also offer the feature as a paid add-on or if you will include it in one of your core plans to create a stronger value proposition.
4. Launch your new offering with a clear competitive advantage.
When you launch, run a marketing campaign that clearly articulates why your new solution is superior to the competitor's recently launched add-on.
4.3 Ignore and Focus on Your Core Value Proposition
ⓘ Best for: When the competitor's add-on is for a niche feature that is not relevant to your Ideal Customer Profile (ICP) or core value proposition. | ||
Goal: Conserve development and marketing resources by strategically ignoring a non-threatening move. | ||
Strategic Rationale: Not every new feature requires a response. If the add-on serves a small segment of the market that you don't compete for, reacting can be a costly distraction. This approach maintains focus on your core business and roadmap. |
1. Confirm the add-on is for a niche audience.
Use customer interviews and market analysis to confirm that the feature is a "nice-to-have" for a small minority, not a "must-have" for your core market.
2. Issue an internal "maintain focus" directive.
Communicate to the GTM and Product teams that you have analyzed the competitor's move and have made a strategic decision not to react, reinforcing focus on the current roadmap.
3. Prepare "acknowledge and pivot" talking points.
Create a simple guide for the sales team to use if a prospect mentions the add-on, allowing them to acknowledge it and quickly pivot the conversation back to your core strengths.
4. Establish "listening posts" to monitor the add-on's adoption.
Set up alerts to monitor customer reviews and social media for mentions of the add-on to track if its adoption grows beyond the initial niche.