Pricing, packaging, and business models can be innovation too
As we continue charging into AI and intelligent agents, the way we price, package, and capture value from customers is changing. Think about online advertising and its progression: it started with CPM (paying for impressions), moved to CPC (paying for clicks), and then CPA (paying for actions that matter), shifting closer to where value is created for the advertiser and the platform is more aligned. Google and Facebook/Meta both evolved this way—technology changed the game, and pricing/packaging and business models adapted.
The same is happening with AI. More companies are moving from per-seat licenses (old SaaS) to outcome-based pricing. For example, Sierra (AI customer service/success bots) charges based on what agents actually accomplish, while Intercom’s AI and Fin AI’s customer success bot bill based on the value delivered rather than usage alone. Sales-focused platforms like Gong.io and Clari tie pricing to measurable improvements in sales effectiveness and forecast accuracy, while AI assistants such as x.ai and Tact.ai link cost to completed meetings or productivity gains. Customer engagement platforms like Drift and Ada scale pricing with leads generated or resolved customer interactions, and call center AI like Observe.AI reflects improvements in agent performance. Even revenue intelligence platforms like People.ai align cost to measurable pipeline growth and revenue impact. These are innovations in pricing, packaging and value alignment between vendor and customer.
For entrepreneurs, it’s critical to see pricing and packaging as innovation, not just a revenue tool. Product innovation, go-to-market innovation, and pricing innovation must all align with customer value.
When implementing a usage-based billing strategy, three principles stand out. Clarity is key - even when pricing involves multiple components like seats, usage volume, or AI-driven resolutions, customers should be able to easily understand how costs add up and scale alongside their business success. This is especially important as your ARR grows and your customer's CFO starts paying attention. Transparency builds trust - clear tiered pricing, as seen with platforms like Intercom, gives buyers a reliable way to estimate spending. Meanwhile, more custom or outcome-based models, like Sierra’s, should still explain the logic behind how pricing is determined. Finally, use visuals strategically - effective design helps simplify complexity; Intercom, for instance, uses plan comparisons and call-to-action highlights to guide decisions, while Sierra leans on brand-focused imagery to emphasize value and performance outcomes. Together, these approaches ensure that usage-based billing not only captures value but also communicates it effectively to customers.
As AI drives measurable results for customers, pricing models will continue to evolve. Companies that tie cost directly to value delivered build trust, increase adoption, and create lasting relationships. In the new AI economy, the smarter your pricing, the more your customers and your business succeed.