2021 State of Usage-Based Pricing
Software buying has evolved and SaaS companies are increasingly moving to a usage-based pricing model. What makes it so attractive? Usage models correspond with faster net expansion and continued growth at scale.
We set out to understand adoption over time and the profiles of companies implementing this pricing model. I along with fellow OpenView Partner Sanjiv Kalevar surveyed nearly 600 SaaS companies to find out how they priced their products in 2021.
In this report, we investigate:
- Whether usage-based pricing is being adopted across the broader SaaS market
- How companies utilizing this pricing model perform relative to their subscription peers
- Examples of when this model works and when it doesn’t work as well
- How traditional subscription companies can quickly get started with a usage model
Find out why leading SaaS companies like Snowflake, Twilio, and Cypress selected usage-based pricing and how it helped them outpace their peers.