Post IPO Contact Center SaaS: Launched Usage Based Pricing with mitigation of 50% revenue shortfall

Date Icon

Jan 22, 2025

The Objective

This post-IPO contact center product had long term plans to introduce usage based pricing ($/voice minute and $/message) to fend off competitor (Amazon) and enable new upcoming use cases. At the same time, the company was struggling to launch UBP because of a potential revenue drawdown with UBP, challenges with engineering deployment of usage meters, sales compensation adjustment challenges with UBP and lack of direction. Our goal was to resolve these problems and launch UBP.

The Solution

  1. Implemented usage based pricing with platform fee guard rails with customer acceptance testing.
  2. Worked on sales compensation methodology to pave the way for UBP model.
  3. Systems (engineering meter, CPQ, billing) were lined up and work prioritized to launch UBP.
  4. Strategic documents for UBP strategy were revised with exec leadership alignment.

The Result

Qualitative Outcome
Successfully launched Usage Based Pricing (UBP)

Usage based pricing was based on $/min and $/message for usage of platform and for telephony use

Quantitative Outcome
Saved 50% revenue loss

Implemented platform fee and usage based pricing to mitigate any revenue loss

Client Name

Post IPO Contact Center SaaS

Service Name

Implemented platform fee and usage model to save 50% revenue reduction!

Industry

B2B SaaS

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