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Ozzie: Building an AI Assistant SaaS With Usage-Based Billing That Aligned Cost to Customer Value

Usage-based billing model that grew NRR to 118%

Client: Ozzie
Ozzie: Building an AI Assistant SaaS With Usage-Based Billing That Aligned Cost to Customer Value

The Challenge

What Ozzie Was Facing

Ozzie offered an AI assistant product on a flat monthly fee, but the pricing was misaligned: power users were getting enormous value at the base price while light users churned because the fee felt disproportionate to their usage. The flat model also made it hard to acquire enterprise accounts who wanted to pay per seat or per API call. CAC was rising because the value proposition was unclear at different usage levels.

The Solution

What We Built

We rebuilt the billing layer with Stripe metered billing, introducing a hybrid model: a base platform fee covering core access, plus usage-based charges for AI calls above a monthly threshold. Plan tiers were aligned to use-case segments — individual, team, and enterprise — each with a different included usage ceiling. Billing transparency was baked into the product dashboard so customers could see exactly what they were spending and forecast their costs. Enterprise accounts got committed-use discounts with annual contracts via Stripe invoicing.

Ozzie: Building an AI Assistant SaaS With Usage-Based Billing That Aligned Cost to Customer Value – solution

Results

Measurable Outcomes

Net Revenue Retention (NRR) grew to 118% within two quarters of the billing restructure
Enterprise ACV increased 70% after introducing annual committed-use contracts
Churn among light users dropped 45% as the entry plan became genuinely good value
MRR growth accelerated from 6% to 14% month-over-month post-restructure

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Ozzie: Building an AI Assistant SaaS With Usage-Based Billing That Aligned Cost to Customer Value | SaaS Development London