7 Trends Impacting SaaS Subscription Models in 2024

May 14, 2024

The nature of SaaS businesses is evolving, with a focus towards profitable growth, differentiation, and integration. In this blog post, we take a look at 7 trends that will impact SaaS subscription models, from monetization, data, outcome based models, to customer success, payments, and GenAI.

Thomas Igou
Reading time: 5 minutes


The Software as a Service (SaaS) industry has experienced a significant evolution in its relatively short lifespan. We’ve transitioned from SaaS 1.0 with its straightforward subscription models to SaaS 2.0, with richer feature sets and competitive expansion. But now, as SaaS 2.0 fades away, we meet SaaS 3.0 – an era marked by profitable growth, near-perfect product/market fit, differentiation, and integration.

Today, SaaS companies no longer compete solely based on their feature richness or freemium models. Instead, SaaS 3.0 companies are expected to provide differentiated value in hyper-competitive markets while ensuring seamless integration with other services and tools. An emphasis has been placed on sustainable growth strategies that balance customer acquisition costs with long-term value creation.

Transition From Pricing to Monetization

SaaS organizations are now looking beyond simple pricing tactics to comprehensive monetization strategies—a significant shift in the landscape. With the evolving pricing function comes the importance of Revenue Operations (RevOps), a strategy that aligns sales, marketing, and customer success to drive growth. In fact, by 2030, it’s expected that 30% of organizations will have a Chief Revenue Officer.

Monetization strategies delve into forming new metrics and packaging to cater to diverse customer needs. This transition indicates a more holistic approach, incorporating customer lifecycle value and retention through tiered pricing, add-ons, and customizable bundles. Organizations are tasked with designing monetization models that adapt to changing market conditions and customer demands.

Embrace the Concept of Total Monetization

As we move forward, total monetization becomes essential. SaaS companies are exploring hybrid and complex pricing models that go beyond the traditional. This includes automation and a comprehensive A to Z monetization approach that encapsulates all forms of revenue generation, including licensing, advertising, and tiered services.

This newer concept encourages businesses to look at every possible facet of their product or service that can be monetized, adopting various pricing structures for different market segments, geographies, and customer types.

Data Remains the Fuel for Total Monetization Strategies

Underpinning the push for total monetization is data quality and intelligence. SaaS businesses are becoming more reliant on big data for strategic decision-making. The need for intelligent systems that can conduct make or buy analysis, predict pricing trends, and personalize offerings for users is non-negotiable.

Investing in data analytics tools has become crucial, as businesses use data-derived insights to optimize their pricing strategies. Leveraging data allows for a more informed approach to designing pricing models that resonate with customer usage patterns and willingness to pay.

Prepare for Outcome-Based Business Models

While subscription and usage-based pricing models are firmly established, the next frontier is outcome-based models. To stay ahead of the game, there’s a growing trend toward conceptualizing and implementing pricing models where customers pay based on the outcomes they achieve using the service.

This shift to outcome conceptualization means offering a hybrid mix of subscriptions, usage, and outcomes. Guaranteeing a customer’s success becomes part of the value proposition, and the pricing strategy is predicated on the tangible value delivered.

Usage Business Models Without Customer Success is a Losing Proposition 

Adoption of usage-based pricing models among SaaS offerings is increasing. However, without a laser focus on customer success, such models are bound for failure. It’s crucial to support customers in achieving proficiency and scaling for growth with your tool to retain them in the long term.

In this spirit, pricing incentives can play a significant role in encouraging product adoption and expansion. A well-designed incentives program will nudge customers towards beneficial behaviors that ensure continuous engagement and satisfaction with the service.

The Value is in Payments 

The current wave in SaaS pricing emphasizes complete solutions that integrate payments into their ecosystems. This integration offers considerable differentiation and embeddedness, allowing businesses to lock in value while giving customers the convenience of an all-in-one solution.

Embedding payment solutions within a platform transcends the mere functionality of a service – it becomes part of the critical operations of the customer’s business. This entrenchment provides SaaS companies with additional monetization channels and deeper customer relationships.

Embrace AI as an Accelerator 

Finally, Artificial Intelligence (AI) emerges as a potent accelerator in designing and optimizing pricing models. By embracing what could be termed ‘GenAI,’ businesses can leverage the predictive capabilities of AI to scale their pricing strategy speed and effectiveness.

AI can identify patterns, predict trends, and deliver actionable insights that can inform pricing adjustments in real-time. In this way, AI contributes tremendously to creating dynamic pricing models that align with customer value perception and market conditions.


The SaaS subscription model landscape continues to evolve swiftly, with differentiation and holistic monetization strategies becoming critical for success. As companies transition through these trends, embracing technologies like AI and a total monetization approach while anchoring strategy in robust data analysis and customer.
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Thomas Igou

Head of Content Marketing @ DigitalRoute

Thomas heads the content marketing team at DigitalRoute. He’s been working with content his whole career, in various formats (hosting podcasts, organizing conferences, writing blogs and reports) and on various topics (usage data, digital sales room, servitization, IT security, i-gaming).

He has two passions in life: football and music. When he’s not playing, watching, or coaching a football game, you’ll likely find him strumming his guitar to a classic 70’s rock song (very likely a Led Zeppelin one).

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