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Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
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The optimal pricing metrics for AI software should align with how customers derive value from your solution and how they naturally think about consumption. Based on our extensive experience with GenAI pricing strategy, here are the most effective pricing approaches:
Recommended AI Software Pricing Metrics
- Usage-Based Metrics
- API calls or requests
- Processing time/computing resources
- Data volume processed
- Number of outputs generated (images, tokens, completions)
- Value-Based Metrics
- Outcomes delivered (successful predictions, accuracy rates)
- Business results achieved (cost savings, revenue generated)
- ROI-aligned measurements
- Hybrid Models
- Base platform fee + usage components
- Subscription tiers with usage limits and overage charges
- User-based subscription with embedded usage allowances
Implementation Considerations
When selecting the right pricing metrics for your AI software, consider:
- Usage alignment: Ensure your pricing metrics correspond to actual product usage patterns
- Customer segments: Different metrics may resonate better with enterprise vs. SMB customers
- Competitive positioning: How your chosen metrics compare to alternatives in the market
- Scaling path: How your pricing enables customer growth without friction
Case Study Example
For a digital communication SaaS leader, we implemented a usage-based pricing model ($/voice minute and $/message) combined with platform fee guardrails. This approach helped them fend off competition while enabling new use cases for their solution without experiencing the typical revenue reduction that comes with pricing model shifts.
Finding Your Optimal Metric
The best pricing metric for your specific AI software will depend on:
- How customers derive and perceive value from your solution
- Your product's unique capabilities and differentiation
- Your go-to-market strategy (enterprise vs. self-serve)
- Industry-specific considerations and norms
Our pricing strategy services can help identify the ideal metrics through empirical analysis of pricing power, usage patterns, and customer value perception.