3 success levers for SaaS finance leaders to thrive in 2025

The Subscription Economy continues to evolve, with finance leaders playing a critical role in capturing opportunities and driving sustainable growth. According to Zuora’s Subscription Economy Index (SEI) 2025 report, forward-thinking finance executives are harnessing three key levers.

Lever #1: Embrace flexible business models

In today's market, rigid revenue structures hinder growth. Finance leaders must champion flexible and scalable business models backed by robust people, processes, and technology infrastructure.

Companies in the SEI outpaced broader economic growth (as measured by the S&P 500) by 11%, bolstered by operational efficiency and sustainable profitability. Furthermore, they increased unique subscribers by 25% over the past two years, indicating successful adaptation to changing customer expectations and economic conditions.

Best practices:

• Regularly assess pricing structures to align with customer-perceived value. Nearly half (47%) of subscribers canceled services due to price increases in 2024.
• Leverage technology to enable rapid experimentation with pricing tiers and packages.
• Align internal processes and empower teams to swiftly implement and manage changes without disruption.

Key takeaway: Flexibility allows SaaS companies to swiftly respond to market shifts, economic pressures, and evolving customer expectations, turning potential disruptions into growth opportunities.

Lever #2: Combine revenue models for resilience and higher growth

The report highlights the critical advantage of adopting hybrid monetization approaches. Companies that blend subscription, usage-based, and one-time revenue streams consistently achieve higher Average Revenue Per Account (ARPA) and reduced churn.

Companies employing multiple revenue models recorded 2.3% to 4.5% faster ARPA growth compared to peers reliant on a single revenue model. Moreover, these diversified companies saw improved churn rates, contrasting sharply with the churn increases among single-model businesses.

Industry expert Stephen Hurrell from ISG predicts significant growth in hybrid models, stating, “By 2027, over half of all enterprises will deploy mixed revenue models combining subscriptions, usage-based pricing, and one-time sales to remain competitive.”

Best practices:

• Identify opportunities for hybrid pricing, such as introducing usage tiers or product bundles alongside traditional subscription models.
• Leverage analytics to monitor revenue model effectiveness, making swift adjustments based on customer feedback and behavior.
• Develop a clear, strategic roadmap for transitioning smoothly to diversified revenue streams without negatively impacting forecasting accuracy.

Key takeaway: Hybrid monetization strategies create resilience, improve ARPA, and reduce churn, positioning companies to outperform competitors during economic volatility.

Lever #3: Optimize and balance product portfolios to maximize customer value

More products do not always equal better outcomes. Instead, success comes from optimizing the mix and balance of product offerings. Zuora’s newly introduced Product Portfolio Balance Score (PPBS) highlights how tailored and balanced portfolios yield higher ARPA and customer retention.

Companies that actively curated their product catalogs, aligning them with detailed insights into customer buying behaviors, achieved significantly higher ARPA. The SEI reveals a striking 118% improvement in PPBS among companies prioritizing product optimization.

Best practices:

• Continuously analyze customer usage patterns and purchase histories to determine the optimal product mix.
• Regularly streamline your portfolio, reducing unnecessary complexity and increasing clarity for buyers.
• Invest in scalable platforms capable of swiftly configuring and managing products, prices, and bundles according to real-time insights.

Mark Thomason, former senior research director at IDC, underscores this approach, noting, "A balanced portfolio allows businesses to reduce selling complexity and enhance scalability, ultimately leading to stronger, more predictable revenue streams."

Key takeaway: Strategic product portfolio management — driven by customer insights — maximizes customer lifetime value, fosters stronger retention, and sustainably boosts ARPA.

Final thoughts for finance leaders

The Subscription Economy's next phase requires finance leaders to adopt new strategic roles: Embracing flexibility, diversifying revenue models, and thoughtfully balancing product portfolios. Adopting these three levers positions SaaS companies to withstand economic uncertainty, capitalize on emerging opportunities, and drive lasting growth.

Finance teams who proactively engage with these best practices will lead their organizations into a future defined by customer-centricity, adaptability, and sustainable profitability.

Want to dive deeper? Explore Zuora’s full Subscription Economy Index 2025 report for additional insights and benchmarks to inform your revenue strategy.