Software is a valuable tool that provides the support and instruction to operate and execute specific tasks. As a service, software is available via subscription or consumption models. It serves the market in both ways, but which model fits your digital service needs? And how do you choose? Taking the time to properly understand the different pricing models for SaaS services pays off. Let’s understand the features and benefits of both models.
Subscription Model Benefits
Subscription service models usually have specific terms, usually annually. Customers agree to pay for monthly products or services and may pay the entire sum at once or in installments. Subscription pricing benefits high-usage customers as they feel they are getting more than their fair share out of the product or service. In addition, because they know the subscription commitment, they know what they are paying and may allocate money toward the annual subscription within their budget strategy. The subscription model enhances customer service. Since the model is powered by continuous updates and interaction between the company and the consumer, the customer feels seen and heard.
Consumption Model Benefits
In a consumption or usage model of service, consumers pay for only the service or consumption they use. The service is delivered on-demand, as is the cost and payment. In contrast to subscription models, consumption-based models provide agility and flexibility to both the business’s and the customer’s needs. Customers can easily equate value to price. This empowers them to take advantage of the features and options they need. Consumption usage also allows customers the flexibility to try new features because they are only paying as they go. With consumption-based pricing models, customers have greater control over their spending because pricing is related to usage.
How to Choose
It is essential to assess both budget capacity and usage expectations to ensure you find the most advantageous yet practical solution. Both models have pros and cons and are worth considering before making a choice that will impact your business. eNotaryLog offers both consumption and subscription-based options to suit all our customer needs. Learn more about our plans and pricing models so you can make the best for your business.