MGI Research Expert Panel on Usage Pricing: Pitfalls and Best Practices – Beyond the Hype
Why usage-based pricing (UBP)?
2021 has seen the rise of the Usage Economy as companies look to add usage and consumption pricing models to their offerings.
Usage pricing provides numerous benefits – a financially attractive entry point to try services, pay-as-you-go offers, greater flexibility, and can help tie price directly to the value your customers perceive. But usage models can also be financially risky and operationally challenging to implement.
Despite this, UBP adoption is expected to continue to take off due to numerous benefits from faster revenue to growth to higher valuations (MGI Research, late 2021:)
- 100% of telecom business
- 15% of tech businesses, moving to 20% by 2025
- 25%+ of Software companies, moving to 35%+ by 2025
- 30% of Software-as-a-Service companies, moving to 50% by 2025
- 5% globally outside of tech and telecom, moving to 6% by 2025
- Companies with UBP tend to outperform their peers
There are important considerations when switching to a usage-based billing model. Check out our most recent panel with BluLogix CEO, Youssef Yaghmour, and Adam Howatson, CEO of LogiSense, as they discuss:
Practical strategies for adopting and optimizing usage pricing models,
Considerations for implementing a usage-based pricing model,
And specific strategies for implementing usage-based pricing at your organization
Ready to learn more? Watch the full expert panel:
Learn more
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