With this as an overall journey framework, the first step is to implement systems to gather customer data and feedback to understand usage patterns for your product. Whether or not you decide to deploy a usage-based strategy, having that data is pivotal to understanding how your customers get value from your SaaS product. The next steps involve asking the following essential questions:
- Who are my customers and what do they expect? If they are enterprises, can they even support usage-based pricing? If not, does a usage-based tiering approach make sense to start with?
- How are you creating values, and does every user of my product within an organization truly get differentiated value from using the product? If yes, a per-seat model might make sense. Consider avoiding usage-based pricing or trying a usage-based tiering strategy.
- Are we ready to try usage-based pricing? Do we have the right customer data, systems, skill sets and tools in place to support any level of usage-based strategy? If not, how do we get them?
- Does our business model support usage-based pricing? Or do subscriptions make more sense for where we are in terms of our financial and operational performance?
- What do competitors do? We don’t want to copy, but we can learn from their similar journeys.
XaaS Pricing tracks pricing and packaging models of 20,000-plus vendors, identifying which vendors are at which state of the usage-based (and ultimately outcome-based) pricing journey. If you’re interested in better understanding how the SaaS market is approaching usage-based pricing, contact us today about beta access to the XaaS Pricing platform.