While the use of SaaS and subscription continues to grow, the reality is that software suppliers use a mix of deployment and monetization models to keep pace with varied customer needs, generate recurring revenue and align price with value.
Revenera’s 2021 Monetization Monitor Software Industry Survey gathers input from leading software companies and provides you with key insights to help you navigate through the quickly changing environment. Key findings include:
A one-size-fits-all approach to either monetization or deployment strategy isn’t sufficient to keep pace with varied customer needs.
- Software buyers demand hybrid monetization and deployment models. Today’s dominant monetization models (used for more than 51 percent of their business) are subscription (36 percent) and perpetual (24 percent) licensing models. In the coming 12–18 months, subscription and usage-based models will be the two largest growth categories for monetization models.
Software suppliers must pursue the goal of aligning price and value.
- Balancing price (expense for the customer) and value (perceived utility) proves challenging with hybrid monetization and deployment models. Only 30% of respondents say that pricing and value are “totally aligned.” Confidence in alignment between price and value jumps significantly for monetization models that are more accurately tied to measurements of usage and engagement. Of companies that can gather usage data “very well,” 61% feel pricing is aligned with value.
Strategies for ongoing revenue growth require agility to respond to the drivers of change.
- Over the past two years, the top reasons for changing software monetization models was to implement a recurring revenue model (reported by 62%). Organizations planning to change monetization models are doing so primarily to enter a new vertical market(s) (reported by 62%); product managers are more active in their pursuit of new vertical market(s), with 72% looking to make this move.
Download the report now for more details and statistics and to see how your company compares.