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HOOGResearch & Advisory

Technology & SaaS

Moving from Seat-Based to Usage-Based Pricing

Testing whether a usage-based model would be accepted by customers, and designing tiers that protect revenue and win rates.

Example engagement
Client
Data and analytics SaaS platform
Industry
Technology & SaaS
Geography
United States and United Kingdom
Duration
8 weeks
Capabilities
Pricing Research, Customer & Consumer Insights

Research design at a glance

How the work is structured

United States and United Kingdom · 8 weeks

  1. 1

    Value-driver interviews

    Economic buyers, data leaders and procurement.

  2. 2

    Van Westendorp and Gabor-Granger

    Price sensitivity across segments.

  3. 3

    Choice-based conjoint

    Testing package structures, usage allowances and add-ons.

  4. 4

    Competitive pricing review

    Published and buyer-reported pricing of alternatives.

Qualitative depth

Interviews, groups & observation

  • Value-driver IDIs~20

Quantitative scale

Surveys, audits & measurement

  • B2B survey respondents~300

Sample sizes are indicative of a typical design for this type of question; real engagements are scoped to the decision.

01

Client context

Seat-based pricing was limiting adoption inside customer organisations, and competitors had begun introducing consumption-based models.

02

Business challenge

Leadership feared a model change would confuse buyers, reduce predictability for finance teams and put existing revenue at risk.

03

Research objective & questions

Identify the value metric customers find fair, estimate willingness to pay, and design a package structure and migration approach.

  • Which value metric best reflects how customers perceive value?
  • How important is cost predictability to buyers?
  • What are customers willing to pay by segment?
  • How should existing customers be migrated?

04

Methodology & approach

Value-driver interviews
Economic buyers, data leaders and procurement.
Van Westendorp and Gabor-Granger
Price sensitivity across segments.
Choice-based conjoint
Testing package structures, usage allowances and add-ons.
Competitive pricing review
Published and buyer-reported pricing of alternatives.

05

Sample & geography

  • ~20 value-driver IDIs
  • ~300 B2B survey respondents
  • Geography — United States and United Kingdom

06

Key findings

  • Buyers accepted usage-based pricing but wanted a committed base with predictable overage.
  • Willingness to pay differed sharply between analytics-mature and early-stage teams.
  • Procurement teams strongly preferred annual commitments over pure pay-as-you-go.
  • Two capabilities were valued enough to sit in a premium tier.

07

Business implications

  • Introduce a hybrid model: platform fee plus usage bands.
  • Create three tiers aligned to analytics maturity.
  • Migrate existing customers with a protected-price period.

08

Outcome

The client received a recommended value metric, tier architecture and migration plan backed by buyer evidence.

Example engagement — Shows how Hoog approaches this type of question. Not a specific client project. Findings are directional.

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