The SaaS industry and its various spin-off sectors have introduced a dizzying number of innovations into the business arena. One of the most important of these is pricing flexibility.
Companies now have more freedom than ever to experiment with different pricing structures, as well as cutting-edge tech that helps you understand and learn from:
In other words, there’s no excuse for not being a trailblazer and charting the best path forward with regard to your SaaS billing model.
And as a CFO, you and your SaaS accounting team will be responsible for doing this anyway. So you might as well do it successfully. Here’s how:
Choosing the right SaaS billing model for your business is a journey rather than a destination. Companies’ billing and pricing practices evolve as their services develop and change and their user base expands to new market segments.
Developing a profitable pricing strategy is rarely a story of overnight success. Try to view yourself as a scientist running an ongoing pricing experiment and tracking your findings rather than hunting for a “golden ticket” solution.
Once you’ve done all this, it’s time to consider which hybrid billing model you’re going to take for a test drive.
When you’re deciding which pricing model to use, it can be helpful to look at what other SaaS companies are doing and why.
Here are four of the most common hybrid pricing models and some reasons why each one might be a strong contender for your pricing model:
Additionally, here are eight other billing strategies for hybrid and consumption billing:
Don’t view these as the limits of your pricing possibilities, though. The beauty of hybrid billing models is that they allow you to experiment and evolve continuously.
Financial automation is vital for researching and seamlessly rolling out your pricing strategy. Learn more about the relationship between automation and effective pricing rollout in our eBook “CFO 3.0 – Digital Transformation Beyond Financial Management.”
The Akuna Solutions Team