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No, You Can’t Just Switch to a Usage-Based Pricing Model Overnight

OpenView Labs

The usage-based pricing model almost feels like a cheat code —it enables SaaS companies to more efficiently acquire new customers, grow with those customers as they’re successful, and keep those customers on the platform. It more closely aligns payment with a customer’s consumption, thereby impacting cash flow and revenue recognition.

Pricing 52
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Consumption-based pricing models: transition guidance for CFOs

OPEXEngine

There are many vendor benefits, too — it is easier to sell and it embodies a customer success solution orientation that drives high customer lifetime value and revenue. These contracts are very common in ‘revenue share’ models (i.e., Less predictable revenue. they do not have to overprovision for “just in case” scenarios).

Pricing 52
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The SaaS Debate: Who Owns the Renewal and Upsell? Customer Success vs. Sales

ChurnZero

They sit down and start scribbling down payments and interest rates in a two-by-two square. Why would we replicate that awful and uncomfortable experience we have in the B2C world with our B2B buyers? Fighting entropy to keep the customer focused on product value through human engagement. Enter the Sales Manager.

Scale 98