B2B SaaS Challenges & Predictions for 2025

As we step into 2025, the SaaS industry stands at a crossroads. The adoption of usage-based pricing has surged over the past few years, with 61% of SaaS providers implementing these models by the end of 2023 (Opexengine). However, pricing is just one piece of a much larger puzzle.

Enterprise buyers are increasingly prioritising cost, with over half rejecting vendors due to unexpectedly high pricing (CIO Dive). At the same time, SaaS companies must navigate the rise of AI-driven solutions, the adoption of composable tech stacks, and a relentless focus on retention over acquisition—forces that are reshaping how businesses operate and grow.

At MarketSizer, we’ve been tracking these trends while helping SaaS teams overcome barriers in acquisition, retention, and expansion.

One thing is clear: the winners of 2025 will be those that embrace adaptability, precision, and sustainable growth strategies.

No time to read it all? Here's the gist of it:

Top 5 Predictions for SaaS in 2025

1. Usage-Based Pricing Becomes the Norm
2. AI Agents Redefine SaaS
3. Composable Tech Stacks Rule
4. Retention > Acquisition
5. ABX > ABM

1. Why the Traditional SaaS Subscription Model is Breaking Down

For years, SaaS businesses relied on predictable, one-size-fits-all subscription models. Businesses paid fixed monthly or annual fees, and scaling was all about acquiring as many users as possible. While this approach offered simplicity and predictable cash flow, it’s rapidly losing favour in today’s market.

Customers now demand pricing structures that reflect the actual value they’re receiving. A study by Chargebee found that 63% of SaaS businesses have implemented usage-based pricing, and this number is expected to grow to 74% by the end of 2023 (Chargebee). Companies like Snowflake and Twilio exemplify the success of this model by tying pricing directly to outcomes, fostering greater trust and retention.

This shift towards flexible, usage-based pricing is highlighted in the graphic below, which breaks down how SaaS companies are adopting these models. 31% of SaaS companies now offer usage-based subscriptions, while 15% are testing usage-based pricing models to explore their effectiveness. This demonstrates a clear trend toward aligning pricing with customer success (OpenView Partners).

For smaller SaaS providers, usage-based pricing presents both challenges and opportunities. While it disrupts predictable cash flows, it allows companies to stand out by focusing on measurable value and aligning pricing with customer success. Nearly half of SaaS companies are now actively offering or testing usage-based pricing, underscoring the urgency for providers to adapt.

What You Can Do:

• Evaluate your pricing model: Can it adapt to usage-based or hybrid structures?
• Leverage customer data: Analyse usage patterns to identify behaviours that drive the most value, and align pricing accordingly.
• Communicate clearly: Show customers how pricing changes provide flexibility and fairness. Transparency builds trust.

This growing adoption of flexible pricing models highlights the fundamental shift in customer expectations. Aligning your pricing with outcomes and value isn’t just a competitive advantage—it’s quickly becoming a necessity.

2. The AI Opportunity: Driving Precision, Personalisation, and Autonomy

AI has already transformed SaaS, but 2025 will mark a new era with the rise of AI agents—autonomous systems that can execute complex workflows, make real-time decisions, and adapt dynamically to customer needs.

NVIDIA CEO Jensen Huang predicts that 2025 will be the year of AI agents, revolutionising industries like customer service, marketing, and software development. Imagine AI agents autonomously handling support inquiries, creating hyper-personalised marketing campaigns, and optimising backend processes—all without human intervention?(Barron's).

The graphic by Cobus Greyling below outlines the five levels of AI agents, showing their progression from rule-based systems to advanced, superhuman AI. By 2025, AI agents are expected to operate at higher levels of capability, delivering unparalleled autonomy and efficiency in SaaS operations.

For SaaS companies, the opportunities are immense. AI agents can scale operations and improve efficiency while maintaining high levels of customer satisfaction. They are also transforming key areas of SaaS operations:

• Customer Retention: AI agents predict churn by analysing user behaviour and engaging at-risk customers proactively.
• Sales Enablement: Tools provide real-time suggestions during calls, helping sales teams close deals more effectively.
• Personalised Onboarding: AI agents guide users through features, improving adoption rates and user satisfaction.

Practical Examples of AI in SaaS Today:

• HubSpot uses AI to automate lead scoring, enabling sales teams to focus on the most promising opportunities.
• Zendesk leverages AI bots to handle over 70% of customer support tickets autonomously, freeing agents to address high-value issues.

As these examples show, AI agents are already transforming key areas of SaaS operations. However, to fully unlock their potential, SaaS companies must ensure they are implemented thoughtfully and responsibly.

How to Leverage AI Agents Effectively:

• Assess readiness: Evaluate your infrastructure for compatibility with AI agents, including APIs, data storage, and integration capabilities. Ensure you have the processing power and infrastructure to handle the increased workload AI agents require.
• Focus on training: Use high-quality datasets to ensure agents perform tasks accurately.
• Monitor performance: Continuously evaluate and refine agents to maintain trust and service quality.
• Start small and scale: Pilot AI agents in a single area, such as customer support, before expanding to other functions. Gather feedback and refine performance metrics during the trial phase.
• Build transparency: Clearly communicate how AI agents operate and the safeguards in place to avoid ethical concerns or bias.

The rise of AI agents is not just a technological evolution—it’s a business imperative. SaaS companies that adopt and scale AI responsibly will gain a competitive edge in personalisation, efficiency, and customer satisfaction.

3. Composable Tech Stacks: Agility in a Fragmented World

The era of monolithic SaaS platforms is fading. Businesses now demand composable technology stacks—modular solutions that allow them to customise and adapt their tech environments to meet unique needs.

The graphic below compares composable and monolithic architectures, highlighting how the shift to modular systems empowers SaaS companies to meet evolving customer demands with greater agility and resilience.

Gartner predicts that by 2027, 75% of employees will acquire, modify, or create technology outside of IT’s visibility (devopsdigest). This reflects the growing trend toward decentralised, flexible systems. Composable tech stacks offer significant benefits, including adaptability to market changes, scalability, and the ability to integrate best-of-breed solutions.

However, these advantages come with challenges. For one, many SaaS teams face skill gaps in managing APIs and microservices effectively, leading to inefficiencies during implementation. Additionally, the upfront costs of setting up modular systems can be significant, especially for smaller companies. Reliance on third-party modules also introduces the risk of vendor lock-in, which could limit flexibility down the line.

What Sets Composable Architectures Apart:

• Faster innovation: Individual modules can be updated or replaced independently, avoiding the delays typical of monolithic systems.
• Greater scalability: Businesses can scale specific components without overhauling the entire system.

For example, a SaaS provider transitioning from a monolithic architecture might replace a single, rigid CRM module with best-of-breed components for customer management, marketing automation, and analytics—each of which can be scaled and upgraded independently.

How to Succeed with Composable Solutions:

• Simplify API integration: Make it easy for customers to integrate your solution with their existing tools and workflows.
• Strengthen data governance: Develop clear policies to prevent data silos and ensure privacy compliance.
• Iterate regularly: Use customer feedback and performance metrics to refine your modular tools and maximise value.

As the demand for flexibility and scalability grows, composable tech stacks will become the backbone of modern SaaS operations. Companies that invest in overcoming the initial challenges of integration and governance will gain a significant competitive edge in delivering tailored, high-performing solutions to their customers.

4. Growth at All Costs is Dead: Retention is the New Growth

The days of “growth at all costs” are over. Rising customer acquisition costs (CAC) and greater scrutiny on profitability mean that retention is now the cornerstone of success.

Research found that improving customer retention by just 5% can increase profits by 25% to 95% (Bain & Company). Leading companies exemplify this approach by investing heavily in customer success to ensure users derive maximum value from their products.

Gainsight has reported impressive results, with SaaS clients saving up to $5M annually and tripling customer outreach after implementing their Customer Success Management solutions.?(gainsight).

How to Drive Retention:

• Engage at-risk accounts proactively: Use data to identify customers likely to churn and address their needs before it’s too late.
• Invest in customer success: Empower teams to help customers achieve tangible outcomes with your product.
• Align metrics with outcomes: When your customers win, so do you.

Retention-focused strategies don’t just reduce churn—they foster long-term loyalty and advocacy, building a sustainable growth engine.

5. Account-Based Experience (ABX): Moving Beyond ABM

2025 will see Account-Based Experience (ABX) emerge as the evolution of traditional Account-Based Marketing (ABM). Unlike ABM, which focuses on acquiring high-value accounts through personalised marketing, ABX takes a holistic approach—aligning marketing, sales, and customer success teams to create seamless, valuable interactions throughout the customer journey.

What Sets ABX Apart?

• Customer-Centric Engagement: ABX ensures consistent, tailored experiences beyond acquisition, focusing on retention and expansion.
• Team Alignment: Marketing, sales, and customer success work as a unified force to deliver value at every touchpoint.
• Data-Driven Personalisation: Real-time insights adapt engagement to customer behaviours and needs.

Why ABX Matters for SaaS in 2025

In a landscape where retention is overtaking acquisition as the key growth metric, ABX delivers:

• Stronger Relationships: Personalised, cohesive engagement builds trust and loyalty.
• Higher Retention and CLV: A focus on value drives long-term customer satisfaction and advocacy.
• Competitive Differentiation: Experience-driven strategies set companies apart in crowded markets.

For SaaS leaders, adopting ABX means putting the customer first, transforming accounts into long-term partners, and driving sustainable growth.

What’s Next? Key Predictions for SaaS in 2025

2025 will be a defining year for SaaS, as companies face the convergence of customer-driven demands, technological advancements, and an evolving competitive landscape.

Here’s what SaaS leaders should prioritise to stay ahead:

1. Usage-Based Pricing Becomes the Norm: Flexible pricing will no longer be optional as customers demand value alignment.
2. AI Agents Redefine Customer Success and Operations: Companies that pilot AI agents responsibly and scale them thoughtfully will achieve significant gains in efficiency and customer satisfaction.
3. Composable Tech Stacks Become the Backbone of SaaS: Modular solutions enable flexibility, faster iterations, and the ability to deliver best-of-breed tools to customers.
4. Retention Overtakes Growth as the Key Metric: Expanding within existing customer accounts is not only more cost-effective but also essential for long-term stability.
5. Account-Based Experience on the Rise: Aligning Sales, Marketing, and Customer Success, ABX will drive deeper relationships across the entire customer lifecycle.

Thriving in the Face of Change

2025 will be a pivotal year for SaaS. The forces driving change—pricing evolution, AI integration, composable architectures, and shifting customer expectations—will reward those who embrace adaptability and innovation.

As Niall O'Gorman said in Navigating the SaaS Apocalypse:

"The future will favour those who are prepared to rethink the old ways and forge new paths."

The question now is: how will you adapt to thrive in 2025?

Join the Conversation ??

What trends are you predicting for this year in the SaaS space? Share your insights and strategies in the comments below.

For more on these topics, check out these resources:

• Navigating the SaaS Apocalypse by Niall O'Gorman
• 5 Levels of AI Agents by Cobus Greyling
• Building a Future-Proof SaaS: A Founder's Guide to Tech, Teams, and Transitions by Victor Purolnik from Trustshoring
• What Is ABX (Account-Based Experience) And How To Do It Right by The CMO

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