Pricing Strategy
Expansion Pricing Models
From automatic upsells to usage-based growth — the four architectures that compound NRR.
MODEL 01
Value Metric
Price scales with customer success — seats, data, transactions. Revenue grows automatically as the customer grows.
25% more top-quartile growth
MODEL 02
Tiered Features
3–4 progressive feature sets create clear upgrade paths. Captures 30% more revenue than single-offering models.
3.2 tiers median SaaS
MODEL 03
Add-On Modules
Core product plus optional specialized modules. Achieves 35% higher expansion revenue than all-in-one models.
61% of SaaS use hybrid
MODEL 04
Usage-Based
Pay-as-you-go with volume discounts. Delivers 18–23% higher net revenue retention versus flat pricing.
43% adoption rate & rising
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