Pricing optimization is one of the scariest to take action without data-informed decisions, but it has essential importance on revealing your full revenue potential.<p>Especially if you are under-pricing your SaaS product, you are wasting a great chance of instant revenue growth.<p>So here are the solid indicators and signals of a right time to increase your prices:<p>* MRR/ARR Growth is Strong and Stable: If MRR or ARR is growing steadily, it suggests that customers find value in your product. You may be underpricing, and a price increase could further enhance revenue without significantly impacting churn.<p>* Customer Churn Rate is Low: If churn rates are low, it indicates that customers are satisfied with your product. This provides an opportunity to raise prices without risking xubstantial churn.<p>* High Customer Lifetime Value (CLTV): A high CLTV suggests that customers are staying with your service for a long time and spending more over time. This indicates that your product is valuable enough to support a higher price point.<p>* Frequent Upgrades and High ARPU: If a significant number of customers are upgrading to higher tiers and ARPU is increasing, it shows that there is a demand for premium offerings. This is a signal that you might be able to increase prices across the board.<p>Now you know it is time for a hike! Great, but remember, it is crucially important to track the consequences of your price change action.<p>Here is How to Measure Impact:<p>* Revenue Growth: An increase in MRR/ARR without a significant rise in churn indicates successful price increases.<p>* Churn Analysis: If churn rates remain stable or only slightly increase, the price increase may be justified. Significant churn may indicate the increase was too steep.<p>* CLTV: If CLTV increases, the price change is likely adding more value per customer, even if some customers churn.<p>If you don't want to waste the potential, you should check your SaaS metrics right now.