![]() This encourages more long-term success and a higher customer lifetime value.Īccording to the Subscribed Institute, subscription-based companies make up to 50% of their overall revenue with usage-based pricing. With no cap on the number of customers who can use your service, there’s more chance of new use cases.Because your price is linked with the value your customers receive, you’re better placed to monetize them over time. ![]() This removes any headaches associated with getting them in the door to begin with. They allow your customers to start at lower costs.Usage-based models offer the most profitable, scalable option for SaaS players: It’s now used across all kinds of SaaS verticals. Infrastructure services like AWS saw its potential early. And for SaaS companies, it unlocks a key differentiator: charging based on value vs. Usage-based pricing has seen a meteoric rise. As we’ll see, many prefer to use them as a complement to something more powerful. SaaS companies aren’t ditching basic subscriptions entirely. 3 benefits of usage-based pricing for SaaS
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