Introducing 3 New Usage Charge Models to Supercharge Your Monetization Strategies

Introducing 3 New Usage Charge Models to Supercharge Your Monetization Strategies

Did you know that offering a healthy balance of usage pricing yields 30% more revenue growth to your business?

According to the Subscribed Institute, companies who have revenue derived from a combination of usage pricing and recurring pricing, grow 1.3X faster than those who don’t leverage usage. Usage pricing incentivizes customers by allowing them to pay for only what they use, and it also allows business revenue to grow as usage grows. It’s a win-win! But keep in mind, there’s a fine balance between not leveraging any usage pricing and leveraging too much usage pricing. No usage and you limit customer choice and risk churn. Too much usage and you lose revenue predictability. Turns out, there’s a goldilocks principle of usage pricing that says 1-25% is just right.


To help customers take advantage of this growth opportunity, Zuora has introduced three new usage charge models:

  • PRE-RATED PRICING MODEL: The Pre-Rated charge model allows you to bill for any service where pricing and rating happen outside of Zuora. Customers can now easily pass through charges and present a clean, clear, and accurate invoice every time.


  • HIGH WATER MARK PRICING MODEL: Charging for a service where peak is key? No problem, let Zuora detect it for you.  Charge by peak consumption within any given period whether by tier or by volume. Once the peak is detected, how you price is up to you.


  • MULTI-ATTRIBUTE PRICING MODEL: Our most powerful pricing model ever allows you the ultimate flexibility to build your own charge model with an Excel-like formula.  Price across a variety of usage patterns including attributes like location, time, customer type, and any other data attribute you can dream up.


“Zuora’s Multi-Attribute Pricing reduces the overhead of managing subscriptions and allows us to manage the multitude of price points in a single configuration system. Introducing new features, such as touchless rental and parking options, to complement our on-demand intelligent mobility solution can be easily configured and immediately available to our entire customer base,” said Edwin Colella, Chief Marketing Officer at OCTO, a leading smart telematics company delivering mobility solutions and connected insurance, which launched in Zuora in 2017.

Usage based charge models enable you to better align long term value with your customers and take your subscription business to the next level. Try out the new usage charge models, and many other monetization models in Zuora Billing and supercharge the growth of your business. When you’re ready, reach out to us!

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