Boosting NRR: A Comprehensive Guide on Usage-Based Pricing Strategy

Mastering usage-based pricing is crucial for improving Net Revenue Retention (NRR) in the SaaS industry. Usage-based pricing offers flexibility to customers and directly links product value to usage, driving organic growth. To calculate NRR for usage-based businesses, consider various MRR components like expansion, churn, and contraction. A data-driven approach is essential, ensuring high-quality usage data is collected and utilized across all teams for strategic decision-making. Enhance customer trust and service by providing transparent usage data and communication tools like real-time dashboards and notifications. Embrace the three pillars for success in usage-based businesses: customer-centric products, functional alignment, and continuous value addition. Utilize Togai's pricing and metering software for efficient pricing and billing solutions.