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Challenges of usage-based pricing and how to overcome them

Opportunity Awaits

In this interview Chris Brown (VP of Innovation at LogiSense) discusses some of the challenges faced, along with the approaches you can take to successfully bring usage-based pricing to your customers.

With customers demanding greater flexibility, enterprises have recently aimed to develop more effective and flexible pricing models - go to market, pricing and packaging are key points of differentiation in every industry. Enterprises that move away from traditional sales models, towards usage-based pricing models are gaining market share. Customers are happier since they only pay for the services they consume and vendors are happier because they can better manage customer satisfaction, up and cross-sell opportunities and can offer pre-paid draw-down buckets based usage across products and services; this encourages customer commitment, but also offers the ultimate in flexibility and transparency. Both sides win.

Usage-based pricing is one the greatest opportunities to transform your business, increase revenue and stay in front of competition: Not only that, but switching to usage-based pricing can also help you increase your customer lifetime value.


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