Gartner Research

Enhance Pricing Models to Address 3 Unpredictable Use Situations for Tech CEOs

Published: 28 April 2022

Summary

Pricing models based on the number of users or transaction volumes often lack flexibility that allows customers to manage spikes in usage. Tech CEOs need to provide transparent options for customers to handle unexpected use and to encourage shared value growth.

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Overview

Key Challenges
  • Without policies to handle usage tier overages, large, unexpected bills can negatively affect customer satisfaction and result in missed growth opportunities.

  • Spikes in usage or unexpected use situations, compounded by a lack of preestablished paths or flexible options to handle them, expose cost risks for both customers and providers.

  • Product portfolios encompassing multiple and varied pricing models can limit wallet-share growth when it complicates a buyer’s ability to predict individual product usage and budget accordingly.

Recommendations

Tech CEOs managing product strategy and launch, as well as looking to develop the optimal pricing and packaging, including the ability to handle unexpected use,

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