In today’s subscription economy, building a great product isn’t enough. According to Chargebee’s 2025 State of Recurring Revenue and Monetization report, the companies growing fastest are those that excel at how they monetize—by aligning pricing strategy with AI innovation, customer outcomes, and speed of execution.

Based on a survey of 473 subscription leaders across the U.S. and U.K., conducted in partnership with third-party research firm Centiment, the report outlines a sharp divide between leaders and laggards—and shows exactly what high-performing companies are doing differently.

Key Findings

• 96% of AI adopters expect revenue growth in 2025, compared to just 69% of non-AI firms.

• Companies using hybrid pricing models (e.g., subscription + usage) are 2x more likely to report margin improvements than those using pure usage-based pricing (67% vs. 32%).

• 83% of companies that test pricing before rollout report stronger alignment with customer value—especially when changes are implemented within a quarter.

• Only 12% of high-growth companies kept pricing static—compared to 30% of slower-growing peers.

• While 70% of companies raised prices in 2024, 40% failed to align increases with perceived customer value—putting retention at risk.

The report underscores a major strategic shift: 58% of respondents now cite monetization strategy as their top revenue lever—outranking product launches, partnerships, and even market expansion.

Additional highlights:

• 77% of companies say AI is their #1 investment priority in 2025 (up from 45% in 2024).

• 29% include AI in standard packages; 24% upsell AI as a premium feature.

• Companies with Net Revenue Retention (NRR) >110% are 14 percentage points more likely to achieve 20%+ annual growth.

• B2B+B2C firms outperform others in both retention (55% increased NRR) and pricing transparency (71% offer clear, explainable models).

INSIDER TAKE

Chargebee’s 2025 report confirms what many in the industry have suspected: monetization is no longer a pricing decision—it’s a growth strategy. Here’s what subscription leaders should prioritize:

Adapt Pricing to AI Capabilities
AI isn’t just a feature—it comes with real costs. Companies that revise their pricing models to reflect AI’s value (and cost structure) are 27 percentage points more likely to forecast high growth than those that don’t.
✓ Takeaway: Price for the value AI delivers—not just access.

Test and Tweak, Don’t Wait
Speed wins. Companies that roll out pricing changes in under a month report only 3% customer dissatisfaction, half the rate of slower movers.
✓ Takeaway: Build a rapid test-and-learn pricing culture.

Use Hybrid Pricing to Serve More Segments
Hybrid models (e.g., subscription + usage or outcome-based pricing) enable companies to meet the needs of both large enterprises and value-conscious SMBs.
✓ Takeaway: Hybrid models outperform pure strategies on customer satisfaction, clarity, and margin impact.

Invest in Monetization Infrastructure
41% of companies cite technical limitations—like lack of billing system flexibility—as a barrier to executing pricing innovation.
✓ Takeaway: Upgrade infrastructure to support multi-dimensional pricing, metering, and reporting.

Anchor Pricing to Outcomes
As AI becomes harder to explain in feature terms, the best-performing companies tie pricing to measurable outcomes: time savings, error reduction, or workflow automation.
✓ Takeaway: Move beyond features—price around what success looks like for your customer.

High-growth companies aren’t just using AI—they’re monetizing it strategically. They’re pairing hybrid pricing models with fast iteration and executive oversight to transform complexity into competitive advantage.

If you’re still treating pricing as an afterthought, you’re not just behind—you’re leaving growth on the table.