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Consumption-based pricing models: transition guidance for CFOs

OPEXEngine

Consumption-based pricing is best used when you can accurately and easily break down your service offering into small, digestible units. The trend has been bolstered by several customer benefits — primarily, the model provides a clear linkage between what a customer pays and what they use or value they realize.

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A Look Back: “SaaS Metrics Masterclass: Key Business Metrics, Pricing Strategies and Billing Models with Stripe’s Head of France and Southern Europe, Guillaume Princen” (Video + Transcript)

SaaStr

Average Revenue per Customer. Customer Lifetime Value (LTV). Customer Acquisition Cost (CAC). & High touch sales on the opposite, is where customers need some help in deciding whether or how to adopt your product. I didn’t want to pay for this service.” MRR, obviously. Transcript.

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Subscription renewal: getting customers to renew subscriptions

ProfitWell

Yes, they might kick the can down the road a little longer, but they only delay the inevitable while giving customers an awful experience in the meantime. The key feature separating subscription businesses from their more standard counterparts is the recurring nature of payments. Of course, you know better.