The best pricing strategy will let you put a number on the metric that customers value most, based on how they actually use your service. This is commonly called a “value metric.”
Simply put, a value metric should do 3 things:
1. Align to customer needs
2. Grow with customers
3. Be predictable — for customers and for the organization
This is fully supported by a recent McKinsey survey of Enterprise SaaS customers that showed that more than 75% of customers want pricing metrics that are aligned with perceived value, easy to understand, and easy to track (and thus predict costs). And yet, only about 27% of SaaS businesses use some sort of usage-based pricing.
The nice thing about a usage-based model is that you can use it to create multiple dimensions — which are, essentially, the levers you pull to drive price points higher and higher, drive engagement, and drive revenue. Depending on your business, your levers could be number of emails, API calls, number of units, or any features that can be packaged in different ways.