501 product leaders responded to this year’s global survey of technology companies, and the findings reflect an industry balancing rapid innovation with the need for sustainable, profitable monetization strategies.
This report is part of an annual series first published in 2019. Subsequent reports in this series will address Software Piracy & Compliance and Software Monetization Analytics.
Here are just a few of the key findings:
- AI monetization is accelerating but squeezing margins: 80% of respondents already offer AI-enabled products, but 70% say delivery costs are eroding profitability.
- Flexibility is reshaping how software is priced: Pure subscription models are projected to decline as usage-based approaches – prepaid, post-paid, and blended – are set to grow.
- Usage-based monetization is now mainstream: 74% of all suppliers have adopted usage-based models at least moderately, with 56% expecting usage-based revenue to grow by 2027
- Price and value alignment remains elusive: Only 36% of companies report strong alignment between pricing and the value customers receive – the same figure as last year, highlighting the difficulty of proving value as customer expectations shift in a rapidly evolving market.
- Outcome-based models are losing momentum: Plans to implement this model have declined from 60% a year ago to 38% today, highlighting the challenges of quantifying results, especially amid ongoing AI experimentation.
- Data gaps amplify churn and retention challenges: 32% of respondents cite churn as a major blocker to revenue growth, while only 14% claim to have an efficient renewal process.
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