Top 5 Pricing Features you must look out for in your Billing tool

A McKinsey 2023 study reveals that 85% of companies experienced contract annualized price increases below the U.S. year-on-year inflation rate in 2022. While software companies plan to derive value from price adjustments, they remain ill-equipped to realize enduring benefits of pricing. The study also found that 40% of participating companies implemented seat-based billing, which presents challenges for sustainable growth and auditing. Forward-thinking software companies are acknowledging these shortcomings, with 97% anticipating a transformation in their pricing strategies soon. A noticeable trend is the shift towards usage-based pricing metrics driven by interest in product-led growth strategies. To prepare for this shift, businesses need to evaluate billing tools that support complex pricing strategies and offer features like billable items, prepaid and postpaid invoicing, in-house usage monitoring capabilities, overrides or overages, and entitlements.