How to Develop a Pay Per Use Pricing Strategy for Your SaaS Product?
Posted: Sat Feb 01, 2025 9:46 am
One of the most important decisions for any SaaS business is how to price their product or service. Pricing impacts not only the revenue and profitability of the business, but also customer acquisition, retention, and satisfaction. There are many different pricing strategies that SaaS companies can use, such as freemium, subscription, tiered, or pay-as-you-go. Each of these strategies has its own advantages and disadvantages, depending on the type, value, and usage of the product or service.
In this article, we will focus on the Pay Per Use pricing strategy, which is also known as usage-based pricing or metered pricing. This strategy involves charging customers based on the amount or frequency of use of a product or service, rather than a fixed or recurring fee. For example, a cloud storage service might charge customers for each gigabyte of storage used, while a video streaming service might charge customers per hour of video watched.
Pay-per-use pricing can be a very effective peru mobile database way to attract and retain customers, especially for SaaS products or services that have variable or unpredictable usage patterns, high unit costs, or low switching costs. However, developing a Pay Per Use pricing strategy is not an easy task. It requires careful consideration of several factors, such as:
In this article, we will focus on the Pay Per Use pricing strategy, which is also known as usage-based pricing or metered pricing. This strategy involves charging customers based on the amount or frequency of use of a product or service, rather than a fixed or recurring fee. For example, a cloud storage service might charge customers for each gigabyte of storage used, while a video streaming service might charge customers per hour of video watched.
Pay-per-use pricing can be a very effective peru mobile database way to attract and retain customers, especially for SaaS products or services that have variable or unpredictable usage patterns, high unit costs, or low switching costs. However, developing a Pay Per Use pricing strategy is not an easy task. It requires careful consideration of several factors, such as: