How is revenue optimization used in SaaS?

Revenue optimization in SaaS centers on balancing seat count, usage, and contract length to lift net revenue retention. Teams model willingness to pay by cohort, then test add‑on bundles and price tiers against churn risk. Modern platforms connect billing, product‑usage, and CRM feeds so pricing moves appear in real‑time dashboards. Moreover, usage alerts flag expansion opportunities before renewal negotiations, letting reps convert free seats into paid ones. That means optimization becomes a continuous loop rather than an annual price hike exercise.