The Client
PE-backed B2B cloud platform automating AP/AR financial controls and approval workflows, serving 17,000+ customers globally.
The Challenge
Unlimited usage model created value inversions
Unlimited usage subscription model created value inversions where heavy users paid less per document than light users whilst the company wasn’t benefiting proportionally as customers expanded usage.
Multiple stacked discounts caused revenue leakage whilst limited ability to monetise new product features hindered growth potential.
What We Did
Hybrid pricing with tiered subscriptions and usage-based architecture
- Developed usage transaction analytics creating four distinct customer profiles
- Identified two critical value metrics correlating with willingness-to-pay
- Designed hybrid pricing model combining tiered subscriptions with usage-based value capture
- Developed three-stage plan assignment logic balancing usage against plan allowance
- Implemented usage soft breach rules and upgrade incentives balancing experience with revenue
The Impact
Natural upgrade pathways aligned with usage growth
35%
Additional ARR opportunity
92%
Customer fit in new plans
Zero
Value inversions
Projected to deliver 35% additional ARR opportunity through optimal pricing architecture whilst 92% of customers fit within recommended plan structures. Eliminated value inversions with natural upgrade pathways aligned with usage growth.
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