Gartner Research

Align Subscription Pricing to Customer Value With Volume Usage Tiers

Published: 10 March 2020

ID: G00465402

Analyst(s): Laurie Wurster , Jeff Chamberlain , Ron Burns


Product marketers seeking growth with subscription models need to institute innovative pricing approaches that equate value to customer business outcome. Tiered pricing metrics combine simplicity and a strong alignment with value to support major stages of the customer relationship.

Table Of Contents
  • Key Challenges



  • Utilize Pricing Metrics Inspired by Business Outcomes
  • Create Sustainable Growth by Implementing Tiers
    • Step 1: Design the Lowest Tiers to Be Competitive and Win New Customers
    • Step 2: Design the Upper Tiers for the Highest Levels of Delivered Value/Success
    • Step 3: Design Middle-Tier Levels That Inherently Define/Prove Usage Value

Gartner Recommended Reading

©2021 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Become a client

Learn how to access this content as a Gartner client.