Analyst(s): Keith Kirkpatrick
Publication Date: December 10, 2024

In September 2024, CX software vendor Zendesk announced plans to implement an outcomes-based pricing model for its AI agents. The company has acknowledged that the traditional, human-centric pricing models are no longer relevant to mostly or entirely autonomous agents, which Zendesk – along with other major SaaS players such as Salesforce and Microsoft – believe will serve as the backbone of future service, sales, and marketing operations. Outcomes-based pricing is designed to more closely link the cost of providing AI to the actual value provided to customers. The growing proliferation of AI agents will likely spur the widespread rollout of outcomes-based pricing in the future.

Key Points:

Zendesk says that in the future, it will only charge for successful outcomes when using its AI, eschewing seat-license fees or consumption-based approaches, which more closely links customer costs to value delivered.
Workhuman, a provider of an employee recognition and rewards platform, has been using an outcomes-based approach for more than a year, guaranteeing ROI against agreed-upon metrics, instead of charging seat-license fees.
Outcomes-based pricing, while currently in a nascent stage, will likely gain traction in the market as customers increasingly seek out solutions that can be directly and transparently linked to real-world business outcomes.

Overview:

In September 2024, Zendesk announced plans to adopt an outcomes-based pricing model for its AI agents, marking a significant shift from traditional human-centric pricing methods. This move reflects the growing role of AI agents in customer experience (CX), sales, and marketing operations, which major SaaS vendors such as Salesforce and Microsoft also anticipate will define the future of business processes. Unlike per-user or consumption-based pricing, outcomes-based models link costs to the value delivered, aligning vendor earnings with customer success and ROI.

AI agents, powered by machine learning and natural language processing, are transforming customer interactions by automating inquiries, making decisions, and improving over time. These agents excel at handling tasks that require processing large volumes of data quickly and accurately, reducing the need for human intervention. Their ability to enhance speed, efficiency, and personalization has made them a critical component of digital transformation, paving the way for innovative pricing models such as outcomes-based approaches.

Outcomes-based pricing offers benefits for both vendors and customers by guaranteeing value and aligning costs with results. Zendesk, for example, plans to charge for successfully resolved interactions, while Workhuman has introduced guarantees tied to broader metrics such as employee retention. However, this model also introduces risks for vendors, as success depends on accurate data, external factors, and the efficiency of AI solutions. If offerings fail to deliver the promised outcomes, vendors may struggle to cover costs or generate revenue.

Though still in its early stages, outcomes-based pricing is gaining attention as AI agents become more widespread. It addresses customer demands for ROI-driven investments and flexibility, especially compared to traditional fixed licensing fees. As AI agents improve and become integral to business processes, this pricing model could increase vendor stickiness and reshape SaaS market dynamics. The adoption of outcomes-based pricing by major SaaS vendors and customer feedback will be key factors to watch as the industry evolves.

You can read the full press release detailing outcomes-based pricing at Zendesk’s website. The full report is available via subscription to the Enterprise Applications IQ service from Futurum Intelligence – click here for inquiry and access.

Futurum clients can read more about it in the Enterprise Applications Portal. Nonclients can learn more here: Enterprise Applications Practice.

About the Futurum Enterprise Applications Practice

The Futurum Enterprise Applications Practice provides actionable, objective insights for market leaders and their teams so they can respond to emerging opportunities and innovate. Public access to our coverage can be seen here. Follow news and updates from the Futurum Practice on LinkedIn and X. Visit the Futurum Newsroom for more information and insights.

Disclosure: The Futurum Group is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.

Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of The Futurum Group as a whole.