Revenue Maximization and Churn Reduction Through Price Models: Insights from Data-Driven Evidence

In this research study, we examined the responses from 212 participants to identify the most effective pricing method to be adopted in order to maximize revenue and minimize churn rate in SaaS companies. The data were collected through a structured questionnaire aimed at understanding user behavior, preferences, and satisfaction levels across various pricing models, including flat-rate subscriptions, pay-per-use, freemium models, and tiered plans. The analysis revealed that user preferences are strongly influenced by pricing flexibility, perceived fairness, and feature accessibility. Among the models assessed, tiered pricing emerged as the most preferred, offering users the ability to align costs with their content needs and budget. While a significant portion of respondents demonstrated sensitivity to price increases, most were willing to continue their subscriptions when the service provided consistent value and transparency. This study underscores the importance of aligning pricing strategies with consumer expectations to support long-term profitability and customer retention. The findings offer practical insights for digital platforms, such as OTT providers (SaaS companies) and subscription-based services, seeking to design or refine pricing frameworks that balance business objectives with user satisfaction.