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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.
Let’s get right into it and look at the difference between client vs customer. What is a Customer? . 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.
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?
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