Usage-Based Pricing: What Sales Needs from Finance to Scale Revenue
There’s a tremendous amount of buzz about usage-based pricing models in the market over the past 12 months. As demonstrated by recent IPOs, a well executed usage model can result in faster top line growth, lower customer acquisition cost, and higher net retention. Success requires arming the sales team with the tools needed to win big deals by offering flexibility in areas such as pricing, contracting, and discounting.
Finance will play a critical role as most of the complexity for operationalizing a usage-based pricing model falls onto the accounting team. Billing, collections, revenue recognition, financial reporting, sales compensation, budgeting and forecasting all gain an added layer of complexity with the usage model.
Attend this educational webinar to learn more about what the sales organizations need from finance to be successful. The presenters have 20 years of experience in sales, marketing, and product management at tech companies that have grown significantly with usage-based pricing models. Discussion topics will include:
- Sales Contracts – How to structure long-term contracts with customers that bring more predictable, recurring revenue
- Discounting Tactics – How to incentivize customers to grow consumption with discounting strategies and loyalty programs
- Revenue Forecasting – How to gain visibility into usage-driven revenue in real time and forecast future consumption.
- Billing Policies – How to think strategically about the details of billing policies to realize an additional 1-2% growth from accounts.