Exploring Value Per Interaction (VPI) Pricing: A Strategic Shift in Monetization Models

Shannon Baird
Jun 20
2 min read

Introduction: Rethinking Traditional Pricing Norms

In many SaaS and technology-driven sectors, especially within proptech and enterprise software, member-based pricing has been the standard. Organizations pay a flat fee based on the number of users who have access to the product. While administratively simple and predictable, this model often falls short in reflecting the actual value customers derive from using a product.

This misalignment has driven many companies to explore more flexible, performance-aligned alternatives—chief among them: Value Per Interaction (VPI) pricing.

Gears labeled "Value," "Usage," "Interactions" interconnected, text "Shifting Gears in Pricing Strategy," arrows from "Flat Fees" to "Dynamic Engagement."

What Is Value Per Interaction Pricing?

VPI, or Value Per Interaction, is a pricing model where organizations are charged based on how often and how meaningfully their users engage with a product. It defines an "interaction" as a measurable, value-generating touchpoint within a product—for example:

A customer support query resolved via a knowledge tool
A listing successfully submitted via a real estate platform
A voice-enabled search initiated by a user

Each of these discrete actions represents utility, and under VPI, they become the unit of economic value.

Why Companies Are Exploring VPI Pricing

Several strategic advantages are prompting organizations to reconsider their pricing architecture:

Alignment With Usage and Outcomes: VPI reflects real-world utility, ensuring that customers pay for the value they actually receive.
Incentivized Product Quality: Since revenue is tied to usage, VPI encourages product teams to deliver features that foster habitual, high-value interaction.
Lower Barrier to Entry: Prospective clients may be more likely to onboard when upfront costs are usage-scaled, rather than flat and fixed.
Scalable Growth Model: As a customer's engagement deepens, so does their pricing—in a way that feels earned, not imposed.

VPI in the Context of Other Pricing Strategies

Pricing Model	Strengths	Limitations
Member-Based	Easy to budget; simple to bill	Misaligned with usage; can over/undercharge based on engagement levels
Flat-Rate	Predictable; operationally simple	Ignores all variability in usage and value
Tiered Pricing	Adds granularity to access	Can be arbitrary and create threshold inefficiencies
Usage-Based (VPI)	Matches value with cost; performance-aligned	Requires strong tracking infrastructure and customer education

Flowchart titled "Should Your Company Consider VPI?" on a blue gradient background. Steps include tracking, engagement, and pricing queries.

Considerations Before Adopting VPI

While the benefits are clear, companies evaluating VPI should also weigh:

Technical Infrastructure: Reliable tracking and analytics are critical for accurately logging and billing interactions.
Client Communication: Customers must clearly understand what counts as an "interaction" and how it will impact their spend.
Revenue Predictability: Finance teams may need to develop new forecasting models to accommodate variable usage patterns.

Conclusion: Pricing for the Next Era of Product Engagement

As software products become more embedded in users' daily workflows, there's increasing pressure to align pricing with value, not access. Value Per Interaction pricing represents a strategic response to this shift—one that emphasizes fairness, transparency, and long-term scalability.

For companies seeking to future-proof their monetization approach, VPI is an increasingly compelling model worth serious consideration.