Many modern pricing models are based on metrics that are perceived to align with or predict a desired business outcome, benefiting customers’ value expectations while allowing providers growth potential. These metrics can be measures of size (for example, number of end users) or volume-driven on the basis of data transactions or data throughput, and are commonly purchased in tiers and via yearly subscriptions.
However, these models often lack the flexibility to manage spikes in usage or temporary needs for additional capacity. Without policies or options to handle unpredictable use situations, technology providers could upset customers with large unexpected bills, which can translate into customer churn and missed growth opportunities.
To maximize product profitability, customers need pricing model options that allow them to flexibly accommodate unpredictable use situations.
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