The way companies charge for their products is changing fast. Businesses that once relied on simple fixed pricing models are now shifting to usage-based pricing (UBP). And it’s not just a trend—it’s a full-blown transformation. Customers now expect to pay for what they actually use. This change is forcing every founder, marketer, product manager, and sales executive to pause and rethink their pricing strategies.
1. 38% of SaaS companies adopted usage-based pricing in 2022, up from 27% in 2021
The shift is speeding up
Over just one year, the adoption of usage-based pricing jumped by 11 percentage points. That’s not a small shift—it’s a major signal that companies are waking up to the power of flexible pricing. More SaaS companies are testing and rolling out UBP models to better align with how customers use their services.
Why does this matter? Because it tells us the market is moving. Fast. And if you’re not already thinking about switching, you might be falling behind.
Why usage-based pricing is catching on
The spike in adoption didn’t happen in a vacuum. There are a few core drivers:
- Customers demand flexibility
- Companies want more efficient monetization
- Revenue leaders need better alignment between price and value
When companies bill customers based on usage, customers feel like they’re in control. This builds trust and improves the customer experience. And when your pricing is tied to value delivered, it’s much easier to justify price increases—or even expand revenue organically.
Actionable advice
Start simple. You don’t need to flip your whole pricing model overnight. Instead:
- Identify a core metric your users value (think: API calls, storage, messages sent)
- Run a pilot for one segment of users
- Collect feedback aggressively
- Refine before scaling
The key is to treat pricing as a product. Test, learn, and iterate. The faster you move, the faster you unlock growth that fixed pricing could be hiding.
2. 61% of high-growth SaaS companies use usage-based pricing
Growth loves flexibility
When we talk about high-growth companies, we’re not just talking about fast revenue increases. These are businesses that have nailed their product-market fit, operate with efficient teams, and scale without burning cash like firewood. What do they have in common? A majority of them use usage-based pricing.
That’s no coincidence.
UBP gives these companies the agility to scale pricing with their customers, not against them. It removes the friction that comes with fixed plans, particularly for fast-growing clients whose needs constantly evolve.
The mechanics behind growth
Usage-based pricing unlocks several growth levers:
- Customers can start small and grow naturally
- Expansion happens through product usage, not sales pushes
- It lowers the barrier to entry while keeping upsell potential alive
And here’s the real kicker: you stop leaving money on the table. Instead of charging a flat fee regardless of usage, your revenue grows with customer success.
Actionable advice
If your company is aiming for high growth, UBP should be on your radar. Start by:
- Mapping the customer journey to pinpoint moments of value
- Tying those moments to usage-based metrics
- Creating tiers or thresholds that feel natural, not forced
Make sure you don’t confuse complexity with sophistication. Your model should be simple to understand, even if it’s usage-based. Keep your billing transparent and always highlight the value users are getting.
3. Companies using usage-based pricing grow 29% faster than peers
Pricing can be your growth engine
It’s tempting to think product and marketing are the only engines of growth. But pricing plays a bigger role than most founders realize. In fact, companies that use usage-based pricing grow 29% faster than those that don’t. That’s not marginal—it’s game-changing.
This kind of lift can reshape your entire growth trajectory. And it’s not because of magic. It’s because usage-based models make it easier for customers to say yes and harder for them to leave.
Why usage-based models outperform
Think of it this way: with fixed pricing, you might be forcing customers into boxes that don’t fit their needs. Some will feel overcharged. Others won’t sign up at all. With UBP, pricing becomes elastic. It bends with the customer’s actual value received.
This elasticity boosts adoption, reduces resistance during the sales cycle, and aligns incentives between your company and your customers.
Actionable advice
Want to see faster growth? Rethink your pricing through the lens of:
- Adoption: How easy is it for someone to start using your product?
- Retention: Are customers paying for what they actually use—and see value in?
- Expansion: Do your best customers pay more as they succeed?
Put simply, UBP helps you grow because it removes friction from every stage of the funnel. Build pricing into your growth strategy—not just your finance models.
4. 21% of public SaaS companies now use usage-based models
It’s no longer just for startups
Usage-based pricing isn’t just for scrappy startups trying to stand out. Now, one in five public SaaS companies has adopted UBP. These are companies with board oversight, strict financial reporting requirements, and large customer bases. If they can make it work at scale, anyone can.
That’s proof the model is sustainable, not just trendy.
Why public companies are leaning in
Public companies are often slower to adopt new pricing models. But usage-based pricing offers two irresistible benefits:
- It aligns revenue with usage, which smooths out forecasting as long as tracking is strong
- It reflects real customer value, which looks good to investors
It’s also a powerful narrative in investor decks. When your pricing model mirrors your product’s utility, it signals strength and confidence.
Actionable advice
If you’re working toward IPO or acquisition, usage-based pricing could boost your valuation story. Here’s how:
- Build robust analytics around customer usage data
- Forecast revenue based on cohorts and usage trends
- Tie your customer success efforts to usage triggers
By connecting value to revenue, you show investors that your growth is durable, not just the result of deep discounts or aggressive sales.
5. Usage-based pricing improves Net Revenue Retention (NRR) by 15% on average
NRR is your secret weapon
Net Revenue Retention is the single most important SaaS metric that too few people pay enough attention to. It tells you how much your existing customers are expanding—or shrinking—after churn and upgrades.
A 15% improvement in NRR might not sound like much at first. But over time, it compounds in a massive way. Companies with higher NRR grow faster without needing constant new customer acquisition.
Why UBP boosts retention
Customers like paying for what they use. They don’t feel stuck or overcharged. When their usage dips, their bill does too. That reduces the chances they’ll cancel during a low month.
At the same time, when usage grows, so does your revenue. You’re no longer relying on sales teams to push upsells. Customers upgrade themselves through activity.
Actionable advice
To boost your NRR through usage-based pricing:
- Set clear upgrade paths that reflect real usage milestones
- Use in-product prompts to guide customers toward value
- Monitor usage dips as early warning signs for churn
UBP builds a safety net into your revenue model. It gives customers room to breathe without fully churning, and opens the door to natural expansion without a hard sell.
6. 70% of customers prefer pricing that aligns with their product usage
Customers want control, not confusion
Modern customers are more informed than ever. They read the fine print, compare options, and want pricing that feels fair. So, when 70% say they prefer pricing that aligns with how they actually use a product, it’s a wake-up call.
Traditional fixed pricing assumes every customer fits into a preset box. But we all know that’s not true. One company might use your platform daily, while another might log in once a week. Charging them the same? That feels wrong to customers—and it shows in churn.
Building trust through fairness
Usage-based pricing works because it’s transparent. It tells customers: you only pay for what you get. That message builds trust right out of the gate. And trust is what keeps customers around long after the onboarding phase is over.
This doesn’t mean your pricing has to be dirt cheap. It just means it has to feel right. When people see that their bill reflects their actual usage, they’re more likely to keep paying—and more likely to grow with you.
Actionable advice
To meet this customer demand, start by talking to your users. Ask:
- What parts of the product do you use the most?
- What do you think should drive cost?
- How would you feel about paying only for that?
Use these insights to test a usage-based layer, even if it’s just on top of your current plans. You can start with a blended model and grow from there. The key is transparency—show the customer how usage turns into dollars and make it easy for them to monitor.
7. UBP companies see a 36% higher median enterprise value/revenue multiple
Valuation loves predictability with upside
One of the biggest concerns with switching to usage-based pricing is that it might make revenue unpredictable. But here’s the twist—investors love it. In fact, companies using UBP see a 36% higher median EV/Revenue multiple compared to those who don’t.
Why? Because usage-based pricing, when done right, shows a direct correlation between customer success and revenue growth. That’s music to an investor’s ears.
The math behind better multiples
Enterprise value is about future potential. If your pricing model shows that revenue naturally expands as customers succeed, your business becomes less reliant on net-new acquisition. That makes future cash flow more reliable—and much more scalable.
Also, usage-based pricing often reduces churn. That’s another layer of stability that investors love. A sticky customer base, combined with the ability to grow revenue without ballooning sales costs, pushes your valuation up.
Actionable advice
If you’re thinking long-term—especially toward fundraising, acquisition, or IPO—your pricing model matters. Here’s how to align it for valuation:
- Track and publish your NRR and expansion metrics
- Use cohort analysis to show how revenue grows over time
- Demonstrate how usage correlates with customer ROI
You don’t need to fully abandon fixed plans. But layering in UBP elements that tie revenue to actual value delivered can dramatically improve how your business is perceived—and valued.
8. 92% of cloud infrastructure companies use usage-based pricing
The infrastructure world leads the way
Cloud infrastructure companies—think AWS, Azure, Snowflake—live and breathe usage-based pricing. And it’s no accident that 92% of them follow this model. It’s because infrastructure products are inherently elastic. Their customers’ usage varies widely, and the pricing must follow suit.
This isn’t just a trend in B2B tech. It’s a blueprint for all companies who want to stay competitive, agile, and aligned with customer needs.
Why infrastructure got it right
These companies understood early on that forcing flat fees in a world of fluctuating demand doesn’t work. A startup using 5GB of bandwidth shouldn’t pay the same as a large enterprise moving terabytes.
And the benefits are real:
- Revenue grows with customer scale
- Customers can start small with minimal friction
- Billing reflects true cost and value
By charging for compute, storage, and bandwidth as consumed, these platforms created a pricing model that feels fair, scales well, and supports massive growth.
Actionable advice
Even if you’re not an infrastructure company, you can borrow this mindset. Start by mapping your product features to customer behaviors that fluctuate. Then:
- Identify usage points that correlate with value delivered
- Create a pricing calculator customers can interact with
- Offer clear cost visibility in real-time dashboards
Don’t wait until your customers outgrow your plans. Give them a path to scale without friction—and pay you more naturally.
9. Usage-based companies average 137% NRR compared to 110% for fixed models
Expansion revenue makes all the difference
A Net Revenue Retention rate of 137% means your revenue from existing customers is growing by 37% year over year, even after accounting for churn. Compare that to 110% for fixed models, and the picture becomes clear—UBP drives stronger, faster expansion.
That’s because usage-based pricing is built for growth. Customers who find value naturally spend more over time. You don’t have to sell them a bigger plan—they grow into it.
The real engine behind SaaS growth
SaaS success isn’t just about getting new customers in the door. It’s about making sure your existing ones stick around and spend more. With UBP, that happens without friction. No negotiations. No new contracts. Just usage that turns into revenue.
This kind of expansion revenue reduces the need for aggressive sales teams and lowers customer acquisition costs. It makes growth more sustainable and more profitable.
Actionable advice
Want to boost your NRR? Focus on the key areas where usage equals value. Then:
- Set automatic usage thresholds that prompt tier upgrades
- Send friendly alerts before bills increase to avoid surprises
- Pair usage growth with education on unlocking more value
Make expansion feel like a reward, not a penalty. Help customers connect the dots between how they use your product and how it helps them grow. The result? A happy customer and a healthier bottom line.
10. 40% of companies that switch to UBP report reduced churn
Customers stay longer when pricing makes sense
Let’s face it—pricing is often a major reason customers leave. They feel like they’re paying too much or not getting enough. But when pricing matches what they actually use, that friction disappears. That’s why 40% of companies that switch to UBP say churn goes down.
It’s not magic—it’s empathy in action.
Churn isn’t always about product
Sometimes, even a great product loses customers because the pricing feels unfair. Fixed pricing forces customers to guess their future needs. And when those needs change—up or down—they either overpay or get blocked.
Usage-based pricing eliminates that guesswork. Customers can scale down during slow months without feeling punished. And they can scale up when they see value.
Actionable advice
To reduce churn with usage-based pricing, think about flexibility first:
- Offer safety nets like usage caps or budget alerts
- Make it easy for customers to downgrade without penalty
- Provide clear, real-time usage reporting
Also, use churn data to identify pricing pain points. Was a customer using less before they left? That’s a sign they didn’t see the value—or couldn’t afford the fixed cost. With UBP, you give them room to stay until value returns.
11. 66% of customers are more likely to continue services with usage-based billing
Loyalty starts with fairness
Let’s get straight to the point—customers are more likely to stick around when they feel they’re being treated fairly. And what’s fairer than paying for what you actually use? This stat says it all: 66% of customers are more likely to stay when services offer usage-based billing.
In a time where customer retention is harder and more expensive than ever, this small shift in pricing model can make a big difference in loyalty and lifetime value.
The psychology of staying
Think about the feeling of being locked into a fixed plan that doesn’t fit your needs. It’s frustrating. You either feel like you’re wasting money or like you’re constantly being upsold. That creates resentment, even if your product is great.
Usage-based billing flips that. It tells customers, “We grow when you grow.” It creates a partnership mindset, not a transactional one.
When customers see their invoice and feel it reflects their usage, not some arbitrary tier, they’re more likely to stay loyal—and even advocate for your brand.
Actionable advice
Want to increase customer stickiness? Shift the pricing conversation from plans to value:
- Show a direct line between product usage and outcome
- Make it easy to see how changes in usage impact billing
- Offer support that helps customers scale usage, not avoid it
Also, don’t wait for renewal to prove your worth. Use monthly usage summaries to reinforce value. When customers see the connection between what they used and what they paid, it builds trust that lasts.
12. 76% of CFOs consider UBP a top priority for pricing innovation
The finance team is paying attention
CFOs are usually laser-focused on risk, forecasting, and cash flow. So when over three-quarters of them see usage-based pricing as a top priority, it means something big is happening.
This isn’t just a marketing or product-led trend. It’s a financial strategy—and a very smart one.
Why CFOs are leaning in
CFOs like predictability, but they love efficiency more. Usage-based pricing, when implemented with strong usage tracking and forecasting tools, actually helps finance teams:
- Align revenue with product consumption
- Forecast based on usage trends, not guesswork
- Identify leading indicators of expansion or churn
It also gives finance teams cleaner metrics to evaluate product-market fit and pricing alignment. When revenue moves in sync with usage, it’s easier to trust the numbers.
Actionable advice
If you’re trying to get buy-in from finance for a usage-based model, frame it in their language:
- Show how usage correlates with revenue growth
- Build historical usage models that project revenue accurately
- Develop dashboards for forecasting based on real-time data
You can also invite the finance team into pricing discussions earlier. Their insights can help you structure usage tiers, thresholds, and billing cycles in ways that support strong reporting and forecasting.
13. 81% of product-led growth companies adopt usage-based or hybrid models
PLG and UBP: A perfect match
Product-led growth (PLG) companies focus on letting users experience value before selling them anything. It’s a strategy that has taken the SaaS world by storm. And it makes sense that 81% of these companies use either usage-based or hybrid pricing models.
Why? Because PLG is about removing friction—and so is UBP.
When the product is the seller
In a PLG model, the product does the heavy lifting. You attract users, let them try the product, and encourage them to upgrade based on usage or success. If your pricing isn’t aligned with this journey, you’re creating barriers instead of removing them.
Usage-based pricing lets users:
- Start with low or no commitment
- Scale usage as they see value
- Pay more as their needs grow
This aligns perfectly with the try-before-you-buy nature of PLG.
Actionable advice
If you’re building or optimizing a product-led growth engine, make sure your pricing plays its part:
- Offer usage-based free tiers or trial credits
- Provide seamless upgrade paths based on consumption
- Use in-app nudges tied to usage milestones to drive conversion
You can also track usage triggers that signal readiness to pay. When users hit these points, show pricing as an invitation—not an obstacle.
14. 57% of companies say UBP improved customer satisfaction
Happy customers drive growth
It might sound simple, but it’s true: when people are happy with your pricing, they’re happier with your product. According to recent data, 57% of companies that switch to usage-based pricing report improved customer satisfaction.
That’s not just about fewer complaints. It’s about more renewals, better reviews, and stronger word-of-mouth. In a world where trust and transparency matter more than ever, your pricing is part of your brand.
Why customers respond well
Customers like knowing exactly what they’re paying for. Usage-based pricing provides that clarity. It also gives them flexibility—if things slow down, they pay less. If they grow, they pay more but get more.
That kind of flexibility removes a lot of stress from the buyer’s journey. It also empowers customers to control their own spend, which gives them a sense of ownership.
Actionable advice
To drive higher satisfaction through UBP:
- Educate customers on how usage impacts cost
- Provide proactive billing alerts and usage dashboards
- Highlight efficiency tips to help them get more value per unit
Remember, the more control customers feel they have, the more satisfied they’ll be. And when satisfaction increases, so do upsells, referrals, and renewals.
15. 89% of usage-based companies say it improved monetization flexibility
One model, many doors
Fixed pricing is rigid. Once a customer picks a plan, they’re locked in until they cancel or upgrade. That creates dead ends in your monetization strategy. But with usage-based pricing, you unlock flexibility. In fact, 89% of UBP companies report stronger monetization flexibility.
This means more ways to serve more customer segments—without overcomplicating your pricing.
Flexibility equals opportunity
UBP lets you:
- Monetize small users without scaring them away
- Scale enterprise accounts without needing special contracts
- Serve seasonal customers who only need value some months
All of this leads to better coverage across your market. Instead of forcing users into a few rigid plans, you meet them where they are—and grow with them.
Actionable advice
To increase your monetization options:
- Build usage-based layers into your existing plans
- Offer hybrid options that include both fixed and variable elements
- Use pricing calculators or estimators to help users visualize their spend
You can also A/B test different usage metrics to see which ones best align with customer value. The goal is to give yourself—and your customers—room to grow without friction.
16. Median revenue growth is 30% faster for UBP companies in the $5M–$100M ARR range
The growth curve gets steeper
Reaching $5 million in ARR is a big milestone. Growing past $100 million is even bigger. What happens in between is where many SaaS companies either stall—or scale. And usage-based pricing seems to be a key driver in helping companies push through that middle stage. In fact, UBP companies in this range grow revenue 30% faster than those using fixed pricing.
That’s not a small lift. That’s the difference between being stagnant and being a category leader.
Why this range matters
Between $5M and $100M, your company starts experiencing very different customer behaviors:
- Customers become more diverse in size and use cases
- Volume increases, but needs become less predictable
- Sales teams shift from founder-led to structured outbound
A one-size-fits-all pricing model simply can’t keep up with this complexity. UBP allows you to scale your pricing alongside these changes, creating more dynamic paths to monetization.
Actionable advice
If you’re in this growth band, now is the time to optimize your pricing. Here’s how:
- Look at your top-performing customer cohorts: What usage patterns do they share? Build pricing around that.
- Use this stage to introduce more refined metering tools and better usage analytics.
- Segment your customers based on behavior, not just size, and tie pricing to what they actually use most.
Don’t wait until you plateau to fix pricing problems. Set up systems that flex with growth, not against it.
17. 48% of developers cite predictable scaling as a UBP advantage
Developers want billing to match performance
While developers aren’t always the final decision-makers, they influence software buying decisions in a huge way—especially in technical or infrastructure-heavy products. Nearly half of developers say predictable scaling is the main reason they prefer usage-based pricing.
That’s a big insight. When developers trust how billing works, they build more with your platform.
Developers and billing friction
Traditional pricing models often create pain points for developers:
- Limits on users or projects cause slowdowns
- Surprise overages create internal tension
- Static plans don’t match fluid project demands
UBP removes all of that. It allows teams to scale usage in line with demand, whether that’s during product launches, testing phases, or steady-state growth.
Actionable advice
If you’re building a product with developer users, your pricing must reflect their need for scale and clarity. Here’s what to do:
- Build real-time usage visibility directly into the product
- Provide automated budget controls or soft limits
- Offer cost simulators or calculators during onboarding
Also, engage your developer community. Ask what usage metrics feel natural to them. The more your pricing aligns with how developers think, the more adoption and loyalty you’ll see.
18. Companies with UBP see a 2x increase in product engagement
Pricing as a usage driver
Engagement isn’t just a marketing goal—it’s the lifeblood of retention and revenue growth. And usage-based pricing is proving to be a powerful engagement tool. Companies that adopt UBP often see a 2x increase in how frequently customers use the product.
Why? Because when people know they’re being charged based on usage, they pay more attention to the value they’re getting. And when usage matches value, customers lean in, not out.
The feedback loop of engagement
In a UBP model, pricing reinforces usage. As customers see more value, they use the product more, which generates more value, which justifies the spend. It’s a loop that creates high engagement and loyalty.
Compare that to fixed pricing, where usage can stagnate post-purchase. With no dynamic trigger encouraging deeper usage, customers often plateau—or drift away.
Actionable advice
To boost engagement through UBP:
- Tie pricing directly to your product’s core value (not vanity metrics)
- Send proactive usage summaries that highlight outcomes, not just data points
- Build in-product nudges that celebrate milestones and hint at next-level usage
The goal is to make customers feel in control and excited to keep using the product—not worried about a surprise bill. Make every usage event feel rewarding and justified.
19. Only 14% of UBP companies report difficulty forecasting revenue, versus 33% of fixed-model companies
Forecasting fears are overblown
One of the biggest objections to usage-based pricing is the fear that it makes revenue unpredictable. But here’s the reality: companies using UBP actually report fewer problems with forecasting than those using fixed plans.
Only 14% of UBP companies say forecasting is a challenge—compared to a whopping 33% of companies on fixed models.
This might sound surprising, but it makes sense when you look closer.
The data advantage
Usage-based pricing forces companies to invest early in:
- Better metering tools
- Cohort-based revenue modeling
- Real-time dashboards that tie usage to revenue
This results in stronger data hygiene, which actually improves forecasting over time. Meanwhile, fixed pricing models often hide usage patterns until it’s too late—leading to churn surprises or unplanned downgrades.
Actionable advice
If you want to make forecasting easier with UBP:
- Invest in good usage tracking tools early (Mixpanel, Amplitude, or custom setups)
- Create customer cohorts and model usage growth over time
- Align your revenue team around usage metrics, not just deals closed
Forecasting with UBP doesn’t have to be messy. When your systems are strong, you can spot trends faster and project revenue with even more accuracy than fixed pricing ever allowed.
20. UBP models correlate with a 20% faster expansion revenue growth rate
The upsell happens naturally
Expansion revenue is the holy grail of SaaS—growth that comes from customers you already have. And usage-based pricing makes it happen faster. In fact, UBP companies grow their expansion revenue 20% faster than their fixed-pricing counterparts.
That’s because UBP doesn’t require a sales call to trigger more revenue. Customers simply use more of what they already love.
Why speed matters
Faster expansion means:
- Shorter payback periods
- More reliable customer lifetime value
- Higher net revenue retention
It also reduces your dependence on net-new acquisition. When customers grow into bigger spend levels, your company becomes more efficient and capital-resilient.
Actionable advice
To accelerate expansion revenue with UBP:
- Map your most common usage growth paths—then optimize for them
- Set usage thresholds that trigger smart upsells or feature unlocks
- Monitor expansion-ready customers and offer timely guidance or resources
Also, communicate expansion as a sign of success. Celebrate it. Customers should feel proud, not punished, when their usage grows. That mindset shift makes a huge difference in how they respond to higher bills—and keeps them on your side.
21. Hybrid pricing models (UBP + fixed) have 35% higher upsell success
Blending for the win
Sometimes, the best solution isn’t all-in on usage-based or fixed pricing—it’s both. Hybrid pricing models, which combine a base fee with a usage-based layer, are gaining traction fast. And for good reason: they boost upsell success by 35%.
That’s a big deal. It shows that customers are more likely to increase their spend when pricing feels flexible, yet still provides structure.
Why hybrids work so well
Customers want predictability, but they also want fairness. A hybrid model offers both:
- A fixed base gives customers confidence and budgeting ease
- A usage-based component allows spending to scale with value
This combination means you don’t hit a ceiling with your revenue. Customers can start small, but their bill grows as their needs grow—without ever feeling forced into an upsell conversation.
Actionable advice
To design a high-performing hybrid pricing model:
- Offer a base subscription that includes key features and a moderate usage cap
- Add a variable usage component for excess consumption or advanced features
- Make it easy to upgrade either the base or the variable tier without a sales call
Hybrid models are also great for managing seasonality or varied user types. If some customers are high-usage and others aren’t, this model accommodates both with minimal complexity.
Remember, the key to hybrid success is communication. Be crystal clear about what’s included in the base and how the usage component works. Confusion kills conversions.
22. Public SaaS companies with UBP outperform others by 12% in stock performance
Wall Street is watching
Usage-based pricing isn’t just an internal strategy anymore—it’s a market signal. Public SaaS companies that use UBP outperform their peers in the stock market by 12%. That’s not only a vote of confidence from customers, but also from investors.
Why does this matter? Because stock performance reflects how the market views long-term potential, sustainability, and risk.
The investor lens on UBP
Investors see a few clear benefits in usage-based models:
- Revenue aligns tightly with value delivered
- Expansion happens organically, improving NRR
- Churn is often lower, boosting lifetime value
These elements create a stronger, more resilient revenue engine—exactly what investors look for. And the stock market rewards that resilience.
Actionable advice
If you’re on the path to going public—or already there—now’s the time to review your pricing model. Here’s how:
- Start collecting strong usage data to support investor conversations
- Build dashboards that show how usage drives revenue growth
- Demonstrate high retention and expansion among your top cohorts
If you’re not ready for full UBP, consider piloting it in one segment or product line. You can highlight early success stories to validate the model before scaling it across your portfolio.
23. 75% of enterprises say UBP helps better match value delivered
Enterprises want alignment
Big companies are under just as much pressure to justify spending as startups. They need to show ROI, track value, and control costs. So when 75% of enterprises say usage-based pricing helps them better align value with spend, you need to pay attention.
This is a major opportunity for vendors to build stronger, longer-term enterprise relationships—by speaking their language of value.
The enterprise mindset
Enterprises don’t just want cheaper options. They want smarter ones. If they can show their CFO that costs match usage and value, they’re much more likely to approve budget.
Usage-based pricing also allows for easier internal allocation. Different teams or departments can be billed based on their consumption, creating a more transparent cost structure.
Actionable advice
To win with enterprise customers using UBP:
- Create dashboards that let them track usage by team or feature
- Offer custom reports that map usage to business outcomes
- Provide flexible contracts that include usage thresholds and negotiated overage rates
Also, build your value narrative. Make sure you’re showing—not just telling—how increased usage leads to increased ROI. That’s how you shift from being a vendor to being a strategic partner.
24. 67% of companies using UBP report faster time-to-value realization
Speed is everything
Customers don’t want to wait months to see value. They want it now—or at least soon. That’s why 67% of companies using usage-based pricing say it helps customers realize value faster.
When people can try, test, and scale usage immediately without needing to commit to a big upfront plan, they’re more likely to dive in. And the faster they get results, the faster they trust your product.
How UBP accelerates value
Usage-based pricing:
- Lowers the barrier to entry
- Encourages experimentation without fear of waste
- Motivates users to explore deeper functionality
This creates a powerful feedback loop: customers try more → see more value → use more → pay more. And it all starts with removing that initial friction.
Actionable advice
To speed up your customer’s time to value with UBP:
- Design an onboarding experience that drives usage early and often
- Provide early usage analytics that highlight quick wins
- Trigger nudges or feature prompts based on actual behavior
Also, pair usage milestones with educational moments. When a customer hits a certain threshold, offer tips on optimizing or expanding their workflow. The more they see success, the more likely they are to deepen usage and become long-term users.
25. Only 11% of UBP companies report lower customer trust vs 26% of fixed-rate firms
Trust is built into the model
One of the least talked-about benefits of usage-based pricing is how much it improves trust. Only 11% of UBP companies report trust issues from customers, compared to more than double that—26%—in companies using fixed pricing.
That’s a major trust gap. And it’s easy to understand why it exists.
Fixed pricing creates doubt
When customers are locked into tiers that don’t match their actual needs, it creates doubt. Are they overpaying? Are they being upsold unnecessarily? Do they even understand how pricing works?
Usage-based models remove that noise. They say: here’s what you used, and here’s what it costs. Simple. Honest. Transparent.
Actionable advice
If you want to build customer trust with UBP:
- Offer real-time usage tracking in your dashboard
- Send clear billing notifications with breakdowns by activity
- Avoid hidden fees, confusing limits, or surprise charges
Also, invite feedback. Ask customers if the pricing feels fair. If you’re tracking usage correctly and aligning it with perceived value, you’ll hear fewer complaints—and earn deeper loyalty.
Transparency isn’t just a feature of usage-based pricing. It’s the foundation of trust in your customer relationships.
26. 58% of pricing leaders say UBP is critical to adapting to market volatility
Pricing needs to flex with the market
We live in unpredictable times. From global supply chain issues to sudden demand spikes and macroeconomic downturns, businesses today face constant market shifts. It’s no surprise, then, that 58% of pricing leaders say usage-based pricing is critical for adapting to volatility.
Fixed pricing models are rigid. They’re built for stability, not change. But markets don’t play by those rules anymore.
The resilience of UBP
Usage-based pricing thrives during market changes because it scales up and down with customer behavior. If usage drops due to budget cuts or seasonality, so does the customer’s cost. When usage rebounds, revenue does too.
This kind of elasticity keeps customer relationships healthy and revenue more stable—even in unstable times.
It also helps new customers say yes when budgets are tight. A low entry cost and pay-as-you-go model make it easier to start small without overcommitting.
Actionable advice
To build resilience with usage-based pricing:
- Set your pricing strategy around value metrics that don’t swing wildly but still reflect actual use
- Offer temporary usage caps or floor protection for key customers during market downturns
- Regularly re-forecast based on rolling usage trends—not just static growth targets
The companies that win in volatile markets are those that stay flexible. UBP gives you the structure and freedom to do just that.
27. 90% of UBP adopters report increased internal pricing agility
Pricing isn’t a set-it-and-forget-it game
One of the biggest internal wins for usage-based pricing? Agility. A whopping 90% of UBP adopters say they’ve gained more flexibility and responsiveness in how they approach pricing.
That means teams can move faster, test ideas, and respond to changes in customer behavior without going through long cycles of approvals and pricing overhauls.
How agility shows up
Internal agility means:
- Pricing experiments can happen without relaunching plans
- You can respond to customer feedback in real-time
- Sales, product, and finance teams work in tighter loops
Instead of waiting months to update pricing or negotiate custom contracts, companies using UBP can react within weeks or even days—because usage data tells them exactly what’s working.
Actionable advice
To build pricing agility into your company:
- Give your product and marketing teams access to real-time usage and billing data
- Create small test groups for new pricing thresholds or usage tiers
- Automate billing adjustments tied to usage so you don’t rely on manual updates
Use this agility to your advantage. Respond to customer segments, seasonal shifts, and product adoption trends with dynamic pricing strategies. You’ll move faster—and smarter—than competitors stuck in static models.
28. Usage-based billing reduces overages and disputes by 40%
No more billing battles
One of the hidden benefits of usage-based pricing? Fewer billing headaches. Companies using UBP report 40% fewer overages and disputes compared to those on fixed or rigid pricing plans.
This makes sense—when pricing is transparent and tied directly to usage, there’s less room for confusion or frustration. Customers can track their own consumption and anticipate what they’ll owe.
Overages breed distrust
Fixed plans often include hard caps or limits. When a customer unknowingly exceeds them, they get slapped with surprise charges. That leads to phone calls, tickets, and tense conversations.
Usage-based billing, especially when paired with real-time tracking and alerts, prevents that drama. Customers are in the loop and in control.
Actionable advice
To reduce billing friction:
- Build usage alerts into your product and send proactive notifications
- Offer visual dashboards that show real-time cost projections
- Allow customers to set soft limits or auto-top-ups based on budget
If disputes do happen, use your usage logs to resolve them quickly. The clearer your data, the easier it is to stand behind your pricing—and keep customers happy.
29. 63% of subscription businesses plan to test UBP in the next 12 months
The shift is already underway
If you’re not exploring usage-based pricing yet, you’re about to be in the minority. Nearly two-thirds of subscription businesses say they plan to test UBP within the next year. That’s a massive shift in strategy—and a clear signal that change is coming fast.
This wave isn’t just for SaaS. It includes media, finance, productivity tools, and B2C services. Everyone is rethinking how they charge—and how they grow.
Why now?
Two big drivers are behind this shift:
- Customers want fairness and flexibility
- Businesses want better monetization and retention
When both sides of the transaction push in the same direction, it’s only a matter of time before UBP becomes the standard, not the exception.
Actionable advice
To prepare for this shift:
- Start by analyzing your usage data. What patterns emerge? Which features are most valued?
- Create simple usage-based pricing experiments: a pilot tier, an add-on, or usage-based discounts
- Interview your top customers and ask how they’d prefer to pay—don’t assume, ask
The companies that start testing early will have more data, more confidence, and more momentum when the full shift hits. Don’t wait for everyone else to lead the way.
30. 80% of UBP companies use granular metrics like API calls, GBs, or user sessions to track value
The details matter
Granularity is the engine that powers effective usage-based pricing. 80% of UBP companies track highly specific metrics—like API calls, gigabytes consumed, or session counts—because these reflect the real value their product delivers.
The more closely your pricing tracks to actual customer outcomes, the more fair, scalable, and defensible it becomes.
The danger of vague metrics
If your pricing is tied to broad, vague units—like “active users” or “feature access”—you risk misalignment. Customers might use your product heavily but stay in a low-paying tier. Or they might feel like they’re paying too much for too little.
Granular metrics fix this. They allow you to scale pricing with precision and build trust through transparency.
Actionable advice
To identify and use the right metrics:
- Map your product’s value creation to tangible actions (e.g. data stored, messages sent, jobs processed)
- Pick a metric that’s easy to measure, report, and understand
- Avoid “gotcha” metrics that spike unexpectedly or confuse users
You can also bundle multiple granular metrics into blended usage tiers. This keeps things simple for customers but still gives you pricing power.
Remember, your pricing metric is your product’s value lens. The clearer that lens, the better your revenue model will perform.
Conclusion:
Usage-based pricing isn’t just another option on the pricing shelf—it’s becoming the standard for modern, agile, and customer-centric businesses. Whether you’re building a startup or scaling toward IPO, the data is clear: usage-based models outperform fixed pricing in nearly every meaningful way.
