Usage-based pricing is growing fast. SaaS, cloud, media, even manufacturing companies are tying revenue to consumption. Customers love the flexibility. But for Finance and RevOps, it creates a forecasting puzzle.
Consumption-based revenue can be unpredictable. Usage changes by the day, sometimes by the hour. And while consumption forecasting is critical for companies with usage-based or mixed revenue models, it’s also one of the hardest to get right.
If you're only forecasting pipeline, you’re only seeing a slice of the picture. And that’s usually where things break down, in board meetings, planning cycles, or when Finance asks for real numbers. To get a full view of revenue, you need to go further.
As more businesses transition to consumption or usage-based revenue models, the comparison of Actuals vs. Forecasts needs to become a central focus. This analysis is key to navigating the variability inherent in these models and ensuring that companies can adapt quickly to changing customer behavior and market conditions.
More companies are shifting to usage-based pricing. But most revenue forecasts still rely on static spreadsheets and guesswork. That makes it hard to stay ahead, especially when revenue doesn’t land at the moment of sale.
Revenue forecasting is nothing new. But in the cloud era, when subscription models, usage-based billing, and real-time customer data rule, it’s not just about guessing where your numbers might land next quarter. It’s about staying in sync with the speed of your business.
Consumption forecasting is no longer a niche tactic, it’s become an essential capability for SaaS, IaaS, and digital service companies…
Not every customer walks away with a loud slam of the door. In usage-based businesses, churn can be slow, silent, and sometimes invisible, until it hits your revenue report.
RevOps teams are pros at setting targets. They align go-to-market functions, define revenue goals, and roll out the tools to track progress. For traditional one-time deals, that structure works well. But when your revenue depends on how much customers use your product, the old playbook starts to show cracks.