21 CHAMPION GUIDES CONSUMPTION PRICING OPENS UP COUNTLESS POSSIBILITIES No one will tell you that adopting or shifting to a consumption-based pricing model is easy. However, it’s the right move if it aligns with your company’s overall product strategy and delivers stronger value to customers. Startups may find it less complicated to adopt a consumption model because everything is greenfield. A try-before-you-buy approach may make it easier to attract customers, but don’t forget that you will chase revenue for a period of time until usage starts to grow consistently. Expectations must be set for a longer ramp-up time, and you must have enough funding and investor buy-in to support this strategy. For mature companies, the process requires plans for handling current accounts and bookings and understanding what a hybrid model looks like. The benefits are that you have time to hone your consumption model to suit your business and can transition sales and finance teams to this new way of operating over time. Remember that everything starts and ends with data. All data must be accessible from a centralized location and shared securely without friction or integration headaches. Today, that means you must build solutions on a cloud data platform if you want to support growth and enable pricing models that protect margins and drive new revenue. The end result is delivering more value to current customers, attracting new customers, and opening up new revenue opportunities—all of which are truly worth the shift. 21 CHAMPION GUIDES