NRR Performance by Pricing Metric Many pricing metrics are now used in SaaS pricing and many companies (more than 60% of the companies in this survey) now use two or more pricing metrics, in other words, they prac琀椀ce hybrid pricing. That said, per-user and per-ac琀椀ve-user pricing metrics s琀椀ll dominate in SaaS, followed by transac琀椀onal pricing (pricing based on either the number of transac琀椀ons or the value of transac琀椀ons). One is beginning to see the emergence of pricing metrics associated with AI, where pricing is o昀琀en metered using tokens. Nodes connected is a pricing metric used mainly by companies in the API space. Despite the popularity of usage-based pricing as a theme among Figure 17: Distribu琀椀on of Pricing Metrics in Survey pricing experts, it is actually used by less than 10% of the companies in this survey. The most popular pricing metric, per user, is also the least successful when measured by NRR performance. Per ac琀椀ve user pricing, though less common, performs much be琀琀er on NRR. This is interes琀椀ng, as ac琀椀ve user pricing tends to (i) have more varia琀椀on as the number of ac琀椀ve users can vary, and (ii) win higher prices as only people actually using the so昀琀ware are paying for it. PeakSpan & Ibbaka Net Revenue Reten琀椀on Research Report September 2023 23
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