Boost your pricing strategy with prepaid!

photo auteur emmanuel pasquet


Approx. reading : about 8 min

The rise of prepaid subscription: how will it boost your growth?!

Pricing is one of the most underrated tools in a company’s business strategy. Yet it can be one of the most powerful ways to increase profits, customer satisfaction, and even brand loyalty.

Of course, the pricing strategy is constantly evolving. In the past two years alone, several new models (such as usage-based billing, event-based billing, and value-based pricing, to name a few) have dominated the industry.

While these models all have an impact on the market growth of many companies, none of them offer the monumental benefits that prepaid subscriptions bring.

This is because prepaid subscriptions allow you to continue using your current flexible pricing models while reducing your risk of churn and unpredictable income.

What are prepaid subscriptions?

Prepaid subscriptions allow customers to prepay for your product and then reduce that balance over time.

As your customers consume, their prepaid balance is updated in real time. That way they (and you) always know where they stand.

When your customer is about to use up their total prepayment amount or is approaching the “threshold” amount you set for them, you have 3 options:

What are prepaid subscriptions?

Combining prepaid subscriptions with the pricing model you already have is a sure-fire way to improve your pricing strategy (which also includes usage-based billing).

Prepaid subscriptions allow your business to:

Accelerate decision

Customer has a feeling of control because it pays only for what it takes / use. It is a very easy way to start with the service without being engaged for too long and it avoid the customer being stuck with a product that don’t fit well. As such, this is a great alternative to free trial too.

Reduce the risks

Collecting money up front reduces risk for your business. With accurate forecasts and predictable revenues, you are able to seamlessly plan and execute your business strategy.

Increase customer value

Prepaid subscriptions can also increase customer value very significantly. 

Think about it: your customers are building long-term relationships. You no longer have the risk of monthly subscriptions that they can cancel at any time.

This simple fact makes these customers much more valuable to your business.

Deliver customized service packages

By dynamically tracking your customers “past utilization”, you can even predict future usage and create a more personalized prepaid subscription offering to meet each of your customers’ unique needs.

This allows you to offer your customers an approach focused on their needs and use and ultimately lead them to favor a prepaid subscription offer because of the superior quality of the service provided.

With prepaid subscriptions, everyone wins

47% of total customers subscription cancellation are due to a lack of clarity in the billing process

ABIGAEL tech research – UNDERSTANDING WHy Your users cancel !

The benefits of prepaid subscriptions are not solely limited to your business.

After all, consumers also want to plan their spending. Allowing your customers to select a prepaid model gives them the ability to secure the price they will pay and thus avoid any price changes during the year.

In addition, prepaid invoicing allows a smoother and simpler customer experience; especially if you offer them the possibility of automatically recharging their subscription during the contract.

Prepaid subscriptions are on the rise among businesses for good reason. They offer obvious benefits not only for your business, but also for your customers.

It can quickly make sense to add prepaid subscriptions to your pricing strategy and give everyone more stability in these uncertain times.


Dotsha delivers the first subscription-to-cash automation platform designed to put every subscription-based or usage-based business on autopilot … from early subscription to cash collection!  

Your business can scale fast without turning its back-office into a mess! 

Keep growing faster… we’ve got your back !

All-In-One platform that unify {Pricing}+{Check-in}+{Billing}+{Payments}+{Dunning}+{Reporting} while the MRR just keeps growing, Dotsha’s plaform is an easy to use and quickly implemented cloud-based platform that augment your existing information system with robust API integrations in order to deliver optimal automation with minimal code. You will forget we are there!

photo auteur emmanuel pasquet


Approx. reading : about 8 min

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