I was talking to a prospect last month, and during the call, he said, “We want to implement usage-based pricing. Our GTM team says the same, too, but we cannot because our billing platform doesn’t support it, and we don’t want to burden our accountants to do manual billing.” When prospects express feelings of helplessness like this, it reaffirms the critical need for flexibledramatically ended a decade of almost unchecked growth.
The company reinvented its offering, providing an integrated platform tailored to modern requirements. The results were nothing short of spectacular. Their Q2 fiscal '23 figures show:• An increase in active customer accounts from 14,300 to 15,300.of New Relic's total revenue came from consumption. Moreover, their Consumption Run Rate saw several big players amplify their spending.
When a company can test and iterate its pricing strategy, it can better meet consumer demands and thus drive demand.To create demand that’s close to what we saw during Covid-19, you need to diversify your offerings and expand your market share. You can try the concept of feature gating —this can act as a market segmenter for your business.provides another case of feature-gating for market segmentation.
By crafting packages that cater to different segments, you can expand your market share from upmarket to smaller companies, ensuring that as they grow, so will their loyalty toward your platform.Up-selling and cross-selling features in your billing tool offer a more agile solution. They allow businesses to adapt to market shifts without the devastating human and financial costs associated with layoffs.