Technology is evolving rapidly, and with it, the way tech companies create, and capture value is undergoing a fundamental shift. The rise of intelligent automation, new usage patterns, and evolving customer expectations are reshaping revenue strategies. In this period of experimentation, particularly for tech firms, aligning go-to-market (GTM) strategies with innovative pricing models is crucial to maximising business impact.
The Shift in Value Creation
AI is revolutionising how companies generate value by enabling unprecedented levels of personalisation, automation, and efficiency. Businesses are leveraging AI driven tools to enhance customer experiences, develop innovative products, and optimise operations. For example, companies like OpenAI and Microsoft are integrating AI-driven automation into business processes and their existing products, allowing organisations to optimise workflows and unlock new capabilities. Similarly, AI-powered security solutions, such as those from SentinelOne, are transforming risk management by proactively identifying and mitigating cyber threats, strengthening overall digital resilience. AI-driven analytics platforms, like Palantir, are empowering businesses with predictive insights, enabling more informed decision-making and fostering innovation. As AI continues to reshape industries, companies must focus on leveraging these advancements to build smarter, more adaptive products and services that enhance value creation for customers.
Additionally, non-technology companies are increasingly launching tech-driven solutions to expand their value propositions. For example, professional service firms are using AI agents to automate tasks like document review, contract drafting, fraud detection and for providing personalised client services. By embedding technology into their business models, non-tech firms are driving deeper engagement, improving efficiency, and creating new avenues for growth and monetisation.
Key Monetisation Models
- Outcome-Based Pricing Instead of charging per user or license, companies are shifting towards value-based pricing models. Intelligent solutions, such as Salesforce’s CRM pricing linked to deal closures, ensure customers pay for measurable results.
- Usage-Based and Tokenised Pricing Cloud computing and automation platforms are increasingly offering flexible pricing models. Snowflake’s token-based system allows businesses to pay for exactly what they consume, ensuring scalability and cost-effectiveness.
- Freemium & Tiered Subscription Models Offering a free version with premium upgrades continues to drive customer adoption. Canva and Notion effectively convert free users into paying customers by providing segmented pricing that aligns with user needs.
- Tech Expansion Beyond Software Non-tech companies are embedding technology into their offerings, leading to hybrid monetisation strategies. Companies like Peloton combine hardware sales with subscription-based services, demonstrating the power of the «Everything-as-a-Service» (XaaS) model.
What This Means for Pricing at Tech Companies
In this evolving landscape, pricing strategies must also evolve to meet customer expectations. When it comes to pricing, here are key takeaways for technology companies as well as for non-technology companies offering tech solutions:
1. Thoughtful offer design maximises customer value
Understanding customer needs and their willingness to pay is paramount in today’s competitive tech landscape. It becomes even more important for software products, with their inherent modularity and diverse features, presenting a unique pricing challenge. To maximise value, companies must thoughtfully structure offerings—deciding which features to bundle, which to offer as premium add-ons, and how to design tiered pricing that caters to different segments. Investing in customer research and pricing analytics helps refine these models, ensuring they align with diverse user preferences and deliver compelling value propositions.
2. Pricing must evolve with customer growth and usage
Customers expect pricing structures that align with their usage patterns and business growth. Software providers must develop flexible models that scale alongside customer needs, integrating pricing strategy directly into the product roadmap. Ensuring tight coordination between these teams enables businesses to offer dynamic pricing structures, such as consumption-based, subscription, or outcome-driven models, that evolve as customer engagement deepens. In fact, we have seen that a lack of alignment between pricing and product development as a major stumbling block for companies pricing emerging technology offerings. [See our article]
3. Value-linked pricing builds trust and customer loyalty
Pricing that reflects measurable value; fosters trust and enhances customer satisfaction. Outcome-based models, where pricing is tied to tangible business results, are gaining traction. For example, a customer support automation tool might charge based on successfully resolved issues rather than a flat subscription fee. Transparent, results-driven pricing structures demonstrate clear ROI for customers and encourage long-term relationships.
4. Integration of technology and professional services into a unified monetisation model unlocks greater customer value
As more non-tech firms, particularly in professional services, embed technology into their offerings—whether AI-driven tools, automation platforms, or hybrid tech-service solutions—the challenge becomes integrating these elements into a single commercial model. Unlike pure software or service models, these businesses must balance the scalability of technology with the high-touch nature of services. Combining advisory work, AI-powered automation, and digital platforms requires a nuanced approach to pricing—one that blends one-time service fees, usage-based billing, subscription models, and outcome-driven pricing. Companies that can successfully align their pricing structures to reflect both the efficiency of technology and the expertise of professional services will unlock greater customer value and long-term revenue potential.
5. Ongoing experimentation is key to optimising pricing
The rapid evolution of technology and customer expectations necessitates ongoing experimentation. Regularly testing and refining pricing strategies through A/B testing and data analysis ensures alignment with market demand. Companies should embrace a culture of pricing agility—iterating on models based on usage data, customer feedback, and competitive benchmarks to capture the full potential of their offerings.
Conclusion: Embracing the Future of Value in Tech
Adapt or be left behind. Tech companies, renowned for product innovation, must now embrace that same pioneering spirit for their commercial strategies. If pricing is on top of your mind for 2025, don’t miss out, contact us to discuss your monetisation challenges.
