Chargebee, a global billing and monetization platform, has released its 2025 State of Recurring Revenue & Monetization Report, spotlighting the growing importance of pricing innovation in AI-driven growth strategies. The study, conducted with research firm Centiment, surveyed 473 finance, product, and GTM leaders from the US and UK.

The findings are striking: companies that pair AI investments with revamped pricing strategies see nearly double the revenue growth and profit margins compared to those focused solely on AI. Businesses embracing hybrid pricing models—mixing subscriptions, usage-based, and flat-fee structures—outperform those relying only on usage-based pricing.

Krish Subramanian, co-founder and CEO at Chargebee, emphasized, “Monetization is now as crucial as product innovation. Growth isn’t just built—it’s monetized.”

Key insights from the report include:

  • 96% of surveyed companies anticipate revenue growth in 2025; two-thirds expect it to exceed 20%.
  • AI tops tech investments, with 77% of firms prioritizing it—more than doubling finance automation.
  • Companies adjusting pricing alongside AI adoption are 2x more likely to forecast strong growth. Yet, 83% of non-AI firms haven’t updated pricing at all.
  • Hybrid pricing leads to better margins—67% report improvements, compared to just 32% using pure usage-based models.
  • Retention remains a challenge, with 53% of leaders citing it as a major concern, while AI adopters shift focus toward innovation and customer experience.
  • Although 70% of businesses raised prices in 2024, 40% did not match those increases with perceived customer value.
  • Speed in pricing changes matters—those who tested and implemented within a month reported more success. Common barriers include metering gaps and tech limitations.
  • Pricing decisions span functions: Executive teams lead (29%), followed by Finance, Sales, and RevOps, showing pricing is now a cross-functional effort.

Chargebee CMO Guy Marion noted, “Pricing has evolved into a strategic growth lever. Companies modernizing their monetization models are delivering stronger financial outcomes and better customer experiences.”

The 2025 report serves as a roadmap for subscription-based and AI-led organizations aiming to align value delivery with scalable revenue models.

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News Source: Businesswire.com