On-the-go monetization companies grow 38% faster

I came across a cool article about usage-based pricing - payments for a product based on usage results. The floating rate has allowed some foreign IT companies to increase profits, but not everything in these stories is so simple. 





I propose to get acquainted with the translation of the material and think about why the same pricing strategy can shoot in one market and fail in another, and also why you cannot just copy someone else's successful experience.





Many people know that HubSpot - a manufacturer of software products for marketing, sales and services - is a prime example of a successful public company with a market capitalization of over $ 17 billion. But HubSpot wasn’t always aiming for an IPO.





For the first five years of operation, HubSpot offered users three subscription packages from $ 3,000 to $ 18,000 per year, depending on the client's needs. The company has struggled with churn and weak revenue from expanding its customer base. Net Revenue Retention (NRR) was roughly 70%, far from the 100% + that most SaaS companies aim for.





Something needed to be changed, so in 2011 they also introduced payments for customers based on the results of using the system: how many leads they attracted, how many users they added. As customers used lead generation software, their base grew and HubSpot spending increased proportionally. A new approach to pricing has allowed the CRM developer to share the success with their customers.





By 2014, when HubSpot went public, the revenue retention rate from repeat customers had jumped to almost 100% - all of which had no impact on the company's ability to acquire new customers.





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In any case, when thinking about how and what prices to set for your product, it is worth remembering the rules and habits of customers that have developed in this and that market; you should not "break" user behavior due to the fact that HubSpot is growing on the other side of the world 38% faster than their competitors.      








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