7 PICK A VALUE METRIC One of the biggest challenges is determining how to price your product. A well-priced solution benefits both SaaS providers and customers. It transforms providers into advocates for value, and value is about more than price—it’s about the success of customers. The purpose of a value metric is to communicate your product’s value to customers. It demonstrates an understanding as to why customers pay you for your service. Here are three factors to keep in mind when choosing your value metric: 1. It should be easy for customers to understand immediately. Your value metric should not be complicated or incomprehensible. 2. It should align with your solution’s perceived value and represent the value your customers believe the solution delivers. 3. It should scale and grow consistently with your customers’ use. HOW TO CHOOSE A VALUE METRIC Start by recognizing the challenges and use cases that customers are trying to solve when they select your solution. Today’s users are driving a value- based approach to buying solutions, so that’s a great place to begin. It’s where your value exists. Think about how your solution functions in order to solve a problem, and then consider the outcomes your customers track. Here’s another source of potential inspiration: Have any of your competitors adopted a usage-based pricing model? If so, look at what they picked as a value metric. It might be the right value metric for you, or it might spark ideas around value metrics that are even more appropriate for your target audience. CHAMPION GUIDES
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