Hightouch has released an automated billing solution for B2B software companies that offer usage-based pricing.
The solution enables companies to deploy usage-based billing without having to invest in integrating one themselves, Hightouch said in a Tuesday (Jan. 31) press release.
“Modern teams are using a data warehouse-centric approach to disrupt this pain point,” Hightouch Co-CEO and Co-founder Tejas Manohar said in the release. “Leveraging Hightouch’s Reverse ETL platform and the warehouse dramatically reduces engineering hours and continued maintenance while offering clarity and auditability on the business logic and underlying data.”
Most software-as-a-service (SaaS) businesses are using subscription-based pricing and have an established stack to correctly price their goods, m3ter Co-founder and CEO Griff Parry told PYMNTS in an interview posted in May 2022.
However, when these firms move to adopt usage-based pricing — a model which is gaining increasing traction — they realize they have a gap in the stack, Parry said at the time.
“That [subscription pricing] tooling they’re committed to and don’t want to rip it out, doesn’t work well in usage-based scenarios,” Parry said.
Implementing the model correctly is important. PYMNTS research has found that customers expect transactions to be easy and convenient, and that service providers that do not provide an optimized bill pay experience risk losing these customers.
Forty percent of customers say they are “very” or “extremely” interested in an improved billing experience, with younger and affluent customers the most likely to do so, according to “Streamlining Bill Payment: How Frictionless Experiences Drive Customer Engagement.”
With Hightouch’s new solution and SQL, customers can automatically sync the usage data directly from their cloud data warehouse to billing applications like Stripe and NetSuite, according to the press release.
Customers can then automatically generate invoices, audit transactions and changes to business logic, and use the data to create go-to-market strategies, the release said.
“With Hightouch, customers can set up their usage-based billing system in less than an hour without requiring large teams of engineers,” the firm said in the release. “Data and finance teams can now deliver a seamless invoicing experience to their users, all with the product usage data already in their cloud data warehouse.”
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