Listly by OneBill Software
It is not surprising that usage-based pricing is seeing the hottest adoption rate amongst businesses. This trend is backed up by data, which shows that businesses adopting usage-based pricing tend to have better Net Dollar Retention (NDR) rates (122% versus 109%) and significantly lower Customer Acquisition Cost (CAC) (5 versus 8) than those that don’t, as reported by Kyle Poyar from OpenView. It’s also a lever that businesses can pull to differentiate themselves from their competition and demonstrate that they are bringing added value to customers. At the same time, businesses can reap the benefits of driving incremental revenue beyond just steady subscription-based income.
However, when you peel the onion, there are many layers and nuances between each type of usage-based pricing model, and therefore it’s important for businesses to consider the best option for their business strategy.
Source: https://www.onebillsoftware.com/blog/10-usage-based-pricing-models/
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With usage-based pricing, businesses can pull to differentiate themselves from their competition and demonstrate that they are bringing added value to customers. Let’s explore the pros and cons of 13 usage-based pricing models:
OneBill usage-based software billing helps businesses automate their usage charge calculation, billing workflow, and charge their customers for what they use.