Remove Cloud Remove Subscription Remove Tiered subscription models
article thumbnail

Usage-based Pricing: What is It and How to Implement it [+ Examples]

User Pilot

This pricing model lowers the barrier to entry for new users and creates a seamless path toward account expansion. Usage-based pricing could use tiers, units, volumes, or impact as its basis for subscription cost. This is why SaaS companies with a usage-based pricing model tend to have higher retention rates.

Pricing 88
article thumbnail

Consumption-Based Pricing vs Subscription-Based Pricing: Which Is Better and Why?

SmartKarrot

There is a possibility that the question of choosing between, ‘Consumption-based Pricing vs Subscription-based Pricing’ might be keeping you up all night. And it has been statistically proven that the 98% of the SaaS companies see their success rates by the choice of pricing models. What is the Consumption-based Pricing Model?

Pricing 11
article thumbnail

Client vs Customer: What Is the Exact Difference in SaaS? Why Is it Important?

SmartKarrot

First and foremost, you should understand that if you have a SaaS business, the people who buy a subscription to your product are customers. This goes for every tier you offer, even Enterprise. The only difference lies in the subscription level chosen. What is a Customer? . What is a Client?