SERVICE

Usage Based Pricing

About The Service

At Monetizely we've implemented Usage Based Pricing (UBP) from soup to nuts across small and large companies. We recognize that while UBP can align well with customer value, it isn't a universal solution - there must be a host of things ready for this change, including sales compensation plans, revenue forecasting, P&L reporting, company valuation and more.

We begin with a strategic assessment to validate if UBP makes sense for your specific context, looking at customer segment readiness, product usage patterns, cost implications, and operational feasibility.

Through a combination of customer research and operational assessment, we provide clear recommendations on how to implement UBP successfully - from designing packages, selecting the right usage metric, smart price point design and market testing.

What’s Include In The Services?

1. Customer Segment Review
  • Comprehensive analysis of customer behavior, usage patterns, and value perceptions.
  • Segmentation of your audience to tailor pricing models to diverse needs and expectations.

2. Package Design & Workshops
  • Development of pricing packages that combine flexible usage tiers with scalable value.
  • Product, Marketing and Cross-functional workshops to brainstorm packages.

3. Price Metric Selection
  • Identification of the most effective and meaningful usage metrics (e.g., API calls, data volume, transactions).
  • Tariff structure selection (1-part, 2-part of 3-part tariffs).

5. Price Point Selection
  • Price point hypotheses based on empirical analysis, competitive and strategy goals.

6. Market Testing
  • Launch of pilot pricing with select customers or survey cohorts to validate assumptions.
  • Use Van Westendorp, Max Diff, Conjoint or In-person research methods.
  • Collection of actionable insights to refine and optimize the pricing model based on real-world feedback.

FAQ’s

Frequently Asked Questions

Man and woman discussing with each other

1

Other consultants sound the same, how are you different?

2

How do you identify the willingness to pay for B2B SaaS products?

3

What is the future of SaaS Pricing?

4

How do you monitor packaging performance?

5

Tell me more about your experience.

6

Should we split test our pricing?

7

What is the role of competition in pricing?

8

How can businesses get started with optimizing their SaaS pricing?