CRM pricing models are set to change in the near future, as the system undergoes a significant revolution with the rise of AI.
In a conversation with CX Today, Martin Schneider, VP & Principal Analyst at Constellation Research, broke down how generative AI is shifting CRM pricing models, and suggested how companies can implement the new models into their customer service offerings.
“We’re going from historical CRM as a system of record [to] a system of action,” Schneider explained.
Under previous systems, CRMs would charge the same amount regardless of who was using it or how much value they got out of it.
However, with the rising popularity of AI agents, Schneider believes that “fixed per-seat per-user price doesn’t make as much sense in terms of value transaction between provider and user.
What we’re seeing with Agentic and Generative AI, outcomes can now be analyzed and measured because of the system, not because of the user.
The Constellation Research VP also outlined some of the benefits and value that AI agents can deliver, stating:
“These AI agents are digital workers that can be tied to the innovation in the CRM application, it’s 24/7, it’s global, it’s multi-currency, it knows everything about your company and products”
This change in pricing is moving towards paying for the work being done and the outcomes generated by these agents.
By evaluating how much you spend on your Agentic AI software a month in comparison to an SDR, you can judge how much more or less the AI is really worth to your workforce
“You should be paying for that work that is getting done and for those improved outcomes,” Schneider said.
Alternatively, Schneider suggests tying the prices directly to the results through the AI system, much like the e-commerce model:
“Others in CRM are looking at it from value levers and outcomes-based – how much volume do you do, how complex is it, and we’re going to take a percentage”
However, he also notes the possibilities of the industry eventually replacing human agents with these AI models, as they can help “rationalize your spend.
“Since you’re not paying humans anymore, you’re actually saving money.”
Which Vendors Are Leading the Charge On This New Pricing Strategy?
Currently, vendors are taking multiple approaches to moving from systems of record to systems of action.
In regards to Salesforce, Schneider notes how the company has taken a “gamble” in adopting their credits model, Flex Credits, which allows customers to “mix and match between users and credits when you renew.”
This enables customers to either squash or reduce their CX human headcount spending, allowing them to transfer more money to the AI credits.
Hubspot is another major firm that is experimenting with new pricing models. Schneider commended the vendor for understanding the future shift towards consumption and providing inexpensive products with what the vendor refers to as “‘core users’ for $70 and access to as many users as you want.”
Away from the larger vendors, Schneider believes that new pricing models can be an effective play for small companies, as the “customer success space are small enough to be disruptive with this and be really forward thinking”.
Elsewhere, other companies are taking intentional distances from AI by focusing on revenue protection, due to the “lack of predictability” that comes with these new models.
This way, “you’re not marrying yourself to one of these new models without seeing that lack of predictability,” Schneider explained.
Current State of the Market
Whilst the traditional per-seat per-user model is still popular in the industry, the rise of AI has clearly opened the door for alternative pricing systems.
And with the majority of these newer models still in their early, hybrid stages, it’s still unclear how they will perform in the long term.
“It’s so early to tell who’s being successful with it because at the end of the day, most of these guys are still predominantly selling the per seat/per user,” Schneider says.
Moreover, vendors have frequently expressed advantages towards the fixed model, as it provides the predictability necessary to project company growth, as well as being straightforward for clients.
Despite this, the growth of AI will likely demand a shift towards the newer model in the near future, as Schneider explained:
“It’s the future, but in the meantime, you’re still renewing, selling and expanding your seats, new divisions and new departments”.
