As more and more software as a service (SaaS) companies move away from the traditional usage-based pricing model, hybrid pricing offers an attractive middle ground. With its combination of usage-based and flat-rate plans, hybrid pricing can benefit both customers and SaaS businesses in terms of cost savings, scalability, customization, and overall value.
There are many popular types of UBP, including pay-per-use, tiered pricing, subscription-based pricing, and freemium pricing, but the pricing model commonly used in industries such as software and SaaS, where businesses charge based on the number of employees or users accessing the product, is known as per-seat pricing.
Hybrid pricing combines two different billing models to give customers the flexibility they need while still providing predictable revenue streams for businesses. It typically includes a flat rate plan that covers basic services plus additional options at usage-based rates. This allows customers to adjust their plans as needed, while keeping costs in line.
Customers benefit from hybrid pricing by having more control and flexibility over their service levels. For example, they may opt for a basic flat rate plan and then add on additional services as needed at usage-based rates. This gives them the freedom to customize their plans according to their budget and needs without paying extra for features they don’t need or use. It also allows customers to predict how much they will be paying each month or year, giving them peace of mind about budgeting for their SaaS services.
Businesses benefit from hybrid pricing because it allows them to offer a more sophisticated pricing structure that is tailored to their customers’ needs. For example, they can set up packages of services at different levels so that customers have the flexibility to choose what they need while also providing predictable revenue streams for the business. This can help SaaS companies increase customer loyalty and satisfaction by offering a wide range of plans at different price points.
Hybrid pricing offers a powerful combination of flat-rate and usage-based billing models that benefit both businesses and customers alike. It allows businesses to customize their plans according to customer needs and provides predictability for budgeting purposes. At the same time, it allows customers to adjust their service levels as needed without sacrificing cost or value. With its combination of cost savings, scalability, customization, and overall value, hybrid pricing can be an attractive option for any SaaS company.
