Consumption Forecasting: How to do it?

For SaaS companies, consumption-based pricing or usage-based pricing has emerged as a strategy to align costs with consumption, providing transparency and flexibility to customers and better visibility to businesses. The pay-as-you-go pricing strategy involves customers paying only for the services or products they consume. This approach allows for billing to adjust periodically, reflecting the actual usage, offering a more adaptable and cost-effective solution for both consumers and providers.

However, transitioning to this model presents challenges in forecasting revenue, identifying growth opportunities, and maintaining operational efficiency. This guide will dive into the intricacies of consumption-based models and consumption forecasting, offering strategies and tools to transition into this emerging model and forecast consumption.