In recent years, usage-based billing has evolved from a novel, nice-to-have concept into a critical strategy for businesses looking to attract and retain customers, grow revenue, and maintain the strategic agility required to stay ahead of their competition.

You can read about the details of usage-based billing and its key benefits here, but here’s a brief overview:

Usage-based billing models elevate basic subscriptions with additional, pay-as-you-go offerings that customers can take advantage of (or not) as needed. These added products and services, which may be bundled billed in a wide variety of models, increase businesses’ revenue potential while lowering the barrier of entry for new customers and giving existing customers flexibility, transparency, and specificity in their purchases — ultimately converting first-time buyers to life-loyal customers who not only keep coming back but also spread the word to their friends and colleagues.

Here at Gotransverse, we’re proud to be helping our clients adopt the usage-based billing models that empower them to achieve — and surpass — their business growth goals. Let’s bring the concept to life by taking a look at three companies we’ve partnered with to master usage-based billing.

Snowflake

Snowflake is a cloud-based data storage and management platform that provides clients with incredible flexibility, scalability, and convenience when it comes to taking care of their data. They understand that every client will have different data needs — the quantity they’re working with, how they use it, etc. — so they’ve developed usage-based pricing models that keep their services affordable by allowing clients to pay for only what they actually need.

Under Snowflake’s billing model, certain features and levels of service are included in clients’ packages — and clients have several choices of feature packages, based on the required features. But the flexibility doesn’t stop there. Each customer can pay on demand (meaning they’re billed in arrears each month for the services consumed) or with pre-purchased capacity. Users pay with Snowflake “credits” that vary in cost based on the selected package and how you pay. For companies new to Snowflake, they can start with on-demand credits and move to pre-purchased credits once they have a sense for their usage needs.

The business’ pricing guide outlines how credits are allocated and used based on clients’ volume needs and other factors, specifies data transfer pricing for users coming from AWS, Azure, or Google Cloud, and shows multiple annual pricing examples to help potential clients understand what their investment might look like based on their particular needs.

Ytel

Ytel, a communications company that manages more than 1 billion email, text, and voice conversations every month, offers pay-as-you-go pricing with different levels for their software apps and API platforms, and for their SMS, email, and voice services.

Customers can also pay for additional services, such as transcriptions, group calls, ringless voicemail, and more, as needed —with no commitment to a certain volume.

But for customers that know they need a high volume of services each month, Ytel also offers a tiered system of volume discounts, enabling users to pay less when they commit to higher levels of consumption in advance. This flexibility empowers customers to take control of their spending, paying for only what they need rather than wasting money on unused capacity, and it encourages loyalty by offering added perks for customers who are ready to commit to high volumes of usage.

Read our case study to learn how Gotransverse was able to help them achieve their billing goals.

Amplifier

Amplifier is a third party logistics firm specializing in third-party order fulfillment and cutting-edge print-on-demand. Their service is a fully outsourced, end-to-end merchandising service, which includes order management, receiving, inventory storage, back-end logistics, pick-pack-ship, and customer service. They’ve printed and shipped millions of orders for thousands of brands.

With Amplifier’s pay as you go pricing model, customers have the option of 4 base subscriptions, based on the features they need, with a 30 day free trial for all plans.

Each order has an overall shipment fee and a fee per item, bucketed into tiers to give you a price break as you fulfill more orders each month. There are also add-on fees for things like drop-ins and oversize items. Freight is charged separately.

For customers with the Standard and Pro packaging options, they get access to inventory as well, where they can pay storage fees, SKU support fees, and receiving fees by standard rates or by usage.

Snowflake, Ytel, and Amplifier are just three of many companies using Gotransverse that have mastered the art of usage-based pricing, and we’ve been honored to play a role in their success. If your company is looking to adopt a billing model that will drive growth and establish a clear competitive edge, we hope you’ll take a tour of our platform today. Then, when you’re ready, call us to schedule your complimentary, personalized demo.