Metered billing is a pricing model in which a customer is charged based on their usage or consumption of a service. This model is often used in subscription management and can bring several benefits to both businesses and customers, including:

Increased Flexibility: Metered billing allows customers to only pay for what they use, rather than a fixed fee, providing greater flexibility for their budgeting and spending.

Improved Cost Predictability: With metered billing, customers have a clear understanding of their usage and the associated costs, making it easier for them to predict and manage their expenses.

Improved Resource Allocation: For businesses, metered billing provides visibility into usage patterns and helps to optimize resource allocation, leading to reduced waste and increased efficiency.

Increased Revenue: Metered billing can result in increased revenue for businesses, as customers who use more of service will pay more, without requiring the business to increase prices for all customers.

Better alignment with customer value: Metered billing helps businesses align pricing with the value a customer receives, as customers who use more of a service will pay more and vice versa.

Overall, metered billing can be an effective pricing strategy for subscription-based businesses, providing greater flexibility, cost predictability, and revenue potential for both businesses and customers.


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