WHITE PAPER
Usage-based Billing: Is it Right for Your Business?
The Future of Billing for SaaS
In today's competitive business landscape, the need to shift from on-premises license software to software-as-a-service (SaaS) is evident. With a delivery model that is scalable, easy to use, cost-efficient and quick to deploy, it’s clear why the SaaS usage-based billing business model is predicted to grow over the coming years.
As your business grows, billing and monetization technology must meet demand. The rise of new market entrants, increased competition and evolving market challenges are all issues that you need to rise above. As with any business, your pricing model has a direct effect on your profitability. For SaaS companies, getting your pricing strategy right is even more critical.
SaaS pricing models rely on your offering’s perceived value, and that means striking the right balance between your offering’s value and its price.
Differentiate with Pricing Innovation
Regardless of the usage-based pricing model SaaS businesses deploy, you’ll find varying degrees of complexity, functionality and innovation. Companies that understand the need for a tactical approach to their pricing strategy will use these aspects to differentiate themselves from their competitors.
From basic models such as flat-rate to more complex models like hybrid (and everything in between), you have countless options to choose from.
However, determining the right one that’ll optimize your pricing strategy can be tricky.