* \u201c\u2026we predict that by the end of this year (2023), 61% of the general SaaS index will have adopted some form of usage-based pricing, with another 21% planning on testing UBP in the future.\u201d<\/em> \u2013 OpenView<\/a><\/p>\n<\/blockquote>\n\n\n\n Other use cases for customer usage data are growing too \u2013 from 5G monetization<\/a> to network data monitoring and user experience enhancements<\/a>.<\/p>\n\n\n\n Time and again, however, we\u2019ve seen businesses put the horse before the cart with their efforts to update their data strategy. They rush into setting up their systems, and cobble something together before realizing the limitations of what they have.<\/p>\n\n\n\n This blog explores the challenges, maturity stages, and technologies you need to plan for before you can start reaping the benefits of starting a subscription pricing model.<\/p>\n\n\n\n We mentioned that to get subscriptions right, you need to get usage data right\u2026and that isn\u2019t easy.<\/p>\n\n\n\n Here are six of the biggest challenges to keep in mind and be prepped for at the beginning:<\/p>\n\n\n\n If these challenges have raised alarm bells, you\u2019re not alone. Our latest research<\/a> reports the data challenges and demands of over 560 enterprises around the world, with data volume and complexity being the biggest concerns.<\/p>\n\n\n\n Let\u2019s move on to examine the stages of maturity that you need to pass through to truly get the most out of usage data.<\/p>\n\n\n\n The pathway towards usage data maturity has three clear sections. Importantly, this is sequential; you must travel through each stage in order, and progressively level up the tech and planning you use to move forward.<\/p>\n\n\n\n I. Connect and Collect<\/strong><\/p>\n\n\n\n You can gain insights by collecting data \u2013 and making it accessible for review within your business.<\/p>\n\n\n\n II. Structure and Bind<\/strong><\/p>\n\n\n\n Being accurately bound to customers and orders takes those insights up a notch. At this stage, you can allow customers to gain insights about their usage by granting them access to this information.<\/p>\n\n\n\n III. Customer Experience<\/strong><\/p>\n\n\n\n This is where the fun really starts. You can offer new, usage-based subscription models with automation and digitalization. The resulting data can enhance your partner ecosystem, upsells are offered at the right time, and revenue leakage is plugged.<\/p>\n\n\n\n A solution put together on the fly may well reach the connect and collect stage \u2013 with some elbow grease it might even begin to structure your data. But there is no easy way to skip to the end. If you want to master your subscription model(s), all integral technologies must be purpose-built, not a patchwork of stuff that are homegrown, off-the-shelf, and highly-customized.<\/p>\n\n\n\n Homegrown Solutions<\/strong><\/a><\/p>\n\n\n\n Let\u2019s start off with one of the most common solutions we see businesses go for. It\u2019s no surprise that companies often trust the talented team of developers they already have to put something together. However, the result can often fall short due to the time it takes to stay on top of a data analysis system that processes revenue-critical data. And even if the team can squeeze it in, you\u2019re pulling them away from more strategic work.<\/p>\n\n\n\n Billing Platforms<\/strong><\/a><\/p>\n\n\n\n There\u2019s a very real temptation to attribute and analyze data that\u2019s provided by your billing platform. After all, you already work with them, and they are already integrated into your business and offerings. The downside is that billing platforms are just that; specialists in payment processing, not complex data. Their experience is going to be limited, as are the returns.<\/p>\n\n\n\n If you\u2019re wondering whether your billing platform is performing as it should, or whether you should be relying on the data it provides for your subscription journey, you and your team should assess its performance KPIs<\/a>.<\/p>\n\n\n\n![\"White](\"https:\/\/www.digitalroute.com\/wp-content\/uploads\/2023\/08\/iStock-1456434051-1024x576.jpg\")
<\/figure>\n\n\n\nHow to Get Started with Subscription Pricing Models<\/h2>\n\n\n\n
1. Get Your Usage Data Strategy on Track<\/h3>\n\n\n\n
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![\"White](\"https:\/\/www.digitalroute.com\/wp-content\/uploads\/2023\/08\/iStock-1449630670-1024x576.jpg\")
<\/figure>\n\n\n\n2. Let Your Usage Data Mature Progressively\u00a0<\/h3>\n\n\n\n
![\"White](\"https:\/\/www.digitalroute.com\/wp-content\/uploads\/2023\/08\/iStock-1449640579-1024x576.jpg\")
<\/figure>\n\n\n\n3. Choose the Right Technology<\/h3>\n\n\n\n