Important Metrics for Using Usage Based Pricing

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Additionally, as you scale, the amount of effort required by your finance team can become labor-intensive and error-prone, making manual work an unviable option. By automating your finance process, you’ll ensure accurate and timely invoicing, accounts receivable, revenue recognition, collections, and financial reporting.
When you think about the metrics to use, be sure to choose those that best correlate with the value of your products or services. Additionally, the metrics should be understandable to customers so they can accurately forecast costs.

UBP is most often measured based on technical metrics, here are some of the most common usage-based metrics:

Compute or CPU : The seconds that the virtual machine was active, or the milliseconds that the service was processing a client request.
Data Transfer : Gigabytes of data that enters or leaves the provider.
Data storage : Gigabytes of data stored by the provider.
Usage or Requests : Many API service providers charge based on the number of requests a client makes.
RAM : Gigabytes of RAM per second consumed by greece mobile database the service.
Credits : Prepaid volume of services defined by the supplier.
Other : Software usage may be charged based on specific usage. For example, a CRM may charge based on the number of customer contacts stored in the system.