Why SaaS Companies Are Using Consumption Gating

In this episode of SaaS Business with Fexingo, Lucas and Luna explore how software companies are using consumption gating — a pricing strategy that caps usage tiers rather than features. They examine why companies like Slack and Zoom have shifted from pure feature-based tiers to usage-based limits, and how this affects customer retention and revenue predictability. The hosts discuss the psychological impact of consumption gating on user behavior, the risks of angering power users, and the data showing a 15% improvement in conversion rates for companies that adopt this model. They also debate whether consumption gating is a fair pricing strategy or a way to squeeze more revenue from customers. With specific examples and numbers, this episode gives listeners a concrete understanding of one of the most important but under-discussed pricing trends in SaaS today. #SaaS #PricingStrategy #ConsumptionGating #UsageBasedPricing #Slack #Zoom #CustomerRetention #RevenuePredictability #Freemium #ProductLedGrowth #Business #Technology #Subscription #Monetization #CustomerSuccess #ConversionRate #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo