Implement Pay-Per-Use Billing Model for SaaS Companies to Maximize Revenue

For every business in the subscription business market, it is tiring enough to acquire new customers. However, you can minimize the entry barriers and the entry cost for your new customers by opting for the pay-per-use billing model. How?

When it comes to buying SaaS services or products, companies have quite extended platforms and many times, the customer simply does not need all of it that you are willing to provide him with. What will you do? Just wait and watch your customers leave you and join the platform of some competitors. No! Rather SaaS companies offer their product and services in segments (called subscription plans). They monetize these segments. And the customer is given the freedom to choose the subscription plan and pay for what he has used.

That’s how you minimize the entry barriers including the cost of the SaaS services or products for a diverse customer base having different affordabilities and usabilities.

In this blog, we are going to shed light on the overall importance of the pay-per-use billing software and model for any subscription business and how SubscriptionFlow allows its users to implement this billing model.

Also Read: How to Evaluate If Pay per Use Billing Is Meant for Your SaaS Business

Achieve Your Revenue Targets with PPU from the Subscription Management Platform

Every SaaS company has some revenue targets. Revenue is not only a way to earn profits but the SaaS companies that achieve their revenue targets have a better chance to attract investors. Because the increase in recurring revenue is one of the indicators to measure the growth of SaaS companies. More is the revenue, more will be the chances of growth. Resultantly, investors earn a profit on their investment when the companies scale and grow.

Pay-per-use billing model can help you achieve your revenue targets for you will be able to:

  • Charge Customers Depending on the Usage
  • Maximize Customer Satisfaction
  • Diversify Customer Base
  • Track the Customer Usage
  • Use a Mix of Billing Models with PPU
  • Diversify the Recurring Revenue

From Billing to Payment, Manage Everything from SubscriptionFlow While You Opt for Pay-Per-Use Model

The basis of achieving the sales and revenue targets are linked to the billing models that you opt for. PPU or pay-per-use maximizes customer satisfaction, a feasible billing model and our billing management system make it possible for you to achieve your targets this year.

Product Evolution

Subscription businesses, especially SaaS products need to be improvised with time. The pay-per-use model enables you to track customer usage so that you get insights that help in making your product or services better. Our SaaS billing platform is based on AI algorithms that play role in usage tracking. When you know what your customer likes or dislikes, there are more chances of introducing better versions of your SaaS product. This product evolution leads toward product maturity.

Expansion of the Customer Base

Pay-per-use allows you to cater to a diverse customer base, you come into the position where you can onboard customers with varying affordabilities. There are budget limitations for many businesses (especially for startups). So, they always look for products and services that can offer maximum usability at budget-friendly rates. When you implement the pay-per-use billing model, even such customers can be onboarded. SaaS Customers are always at ease that they pay for what they are using. And the flow of your revenue stream improves for you cater to the needs of not only SMBs but also startups.

Customer Loyalty

First, you need to understand what customer loyalty is. It is for sure that if you do not deliver what the customer needs or expects, then you cannot make him stay onboard. Even loyal customers are not liable to stay onboard if you do not satisfy them. See, customer loyalty never means that the loyal customer will stay onboard no matter what happens.

A loyal customer is the one that can give you a chance to improve your services or product since you have kept him satisfied in the past. Also, a loyal customer would leave positive reviews about your services and probably recommend your services or product to others. PPU when implemented increases customer loyalty.

Comparatively Lower Cost

Pay-per-use billing model makes you offer customers an affordable solution. The customer would know that he has to pay for what he uses so he will use it as per his affordability. When the customer is aware of the fact that the charges he has to pay to depend on his usage, he will keep his usage under check. Also, billing models involve psychological factors. And as per the psychic factor associated with the pay-per-use, customers consider the PPU model a cost-effective billing solution.

Also Read: Indicators to Test If Your Pay-As-You-Go Billing Model Is Hurting Or Helping Your Subscription Business

Extend Your Outreach to Customers with SubscriptionFlow

To onboard more customers, is the target of every subscription business. SubscriptionFlow is here to enable you to achieve your customer acquisition and retention targets by the implementation of the pay-per-use billing model.

More Transparency

Yes, PPU or pay-per-use billing model makes your billing system more transparent for you because customer usage can be tracked at any time. You know, you are charging customers rightly, and the customer knows he is being charged fairly. This transparency brings you to the position to extend your outreach to new customers.

Better Customer Services

By opting for pay-per-use for SaaS, you can offer better customer service because you get track of customer usage. You know the purchase behaviour of your customer. Better customer experience means you have a chance to extend your entire customer base. You can even enter new international markets.

The flexibility of the Billing Model

The pay-per-use billing model allows you to try a mix with other billing models as well. The mix of billing models caters to more customers who have diverse demands.

If you want to implement the pay-per-use billing system for SaaS, then contact SubscriptonFlow experts. We assure you that with us, you will enjoy all the benefits of the pay-per-use for SaaS that have been mentioned in this blog.