Why One SaaS Company Ditched Per-User Pricing for a Value-Based Model

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A B2B SaaS company discovered that an enterprise client with 300-plus employees was sharing login credentials among staff to avoid paying for additional seats, exposing a fundamental flaw in per-user subscription pricing. The company found that charging per seat actively discouraged product adoption and penalized customers for expanding tool usage across their organizations. With the rise of AI automation, the problem deepened further, as software delivering greater efficiency with fewer human users would paradoxically generate less revenue under a headcount-based model. After auditing 14 months of churn and downgrade data, the company identified recurring failure patterns in its seat-based pricing structure. It subsequently abandoned user-based billing in favor of a value-led pricing strategy, which it credits with significantly improving its Net Revenue Retention.

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ProgrammingDEV Community ·

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