Impact Pricing
Memecast #28: Pricing Metrics Are Correlated With Value Metrics
- Author: Vários
- Narrator: Vários
- Publisher: Podcast
- Duration: 0:03:39
- More information
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Synopsis
The best pricing metrics are highly correlated with users value metrics. A pricing metric is what do we charge for McDonald's charges for hamburgers? That's a simple pricing metric, PayPal charges a percentage of the revenue that we collect. That's a pricing metric. There are many different types of pricing metrics, especially in the world of SaaS. We have the ability to choose many, many different possible pricing metrics. We could choose the number of clicks we could choose. The number of leads we could choose, the amount of data that somebody downloads or the number of gigabytes. Someone has access to there's many, many different possible. Pricing metrics. Probably the most common is users. How many users are there or a per seat basis, we get to choose what pricing metric we want to use. And what we want to do is choose a pricing metric that is highly correlated with a value metric and a value metric is how is it that a customer perceives value from the product. “Choose a pricing metric that is highly cor