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This Monetization Approach Is Becoming More Prominent in Software Sales
- Subscription software monetization is clearly popular today.
- Approximately 9 out of 10 (89%) of software suppliers use subscription monetization models.
- 59% saying that usage-based are set to grow as a percentage of their overall software license revenue between now and 2026.
- Subscription and usage-based monetization can—and should—coexist to help software producers and IoT device manufacturers take a comprehensive approach to software monetization that helps drive annual recurring revenue (ARR) and optimize sales strategies.
- A usage-based model helps alleviate the hurdles that can lead to customer churn.
- 37% will be doing to offer usage-based models to align with customer value.
- It’s essential for usage-based pricing to implement usage data to help teams from across the organization.
- Begin with a data-gathering period. Get the telemetry data that will provide a sense of the utilization—the appetite—for occasional use of your software.
- As customers get accustomed to easy access to your software, you’ll be able to make the shift from free tokens to paid tokens.
- Gathering the usage data to make it happen will pay off–for you and for your clients, alike.
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