It’s 2019, and what was only recently chiefmartec.com’s Martech 5000 has swelled to a whopping 7040. As a result of this proliferation of technology, advertising tech (adtech) and marketing technologies (martech) continue to converge, into what is now being affectionately dubbed “Madtech.”
Topics: SaaS, operations, Pricing, culture, martech, madtech, Adtech
This series of blog posts is exploring companies in the emerging performance economy. Performance based pricing—also known as outcome-based pricing or results-based pricing—refers to a pricing model where the product is priced based on the customers’ expense reduction or revenue gained as a result of the adoption that product.
In the first two posts of this series, we covered performance-based pricing models that use revenue gained as the lever for shifts in pricing.
In performance economy spotlight #3, we’ll look at the other side of the performance-based pricing coin—using expense/cost reduction, rather than revenue gained, as a mechanism for setting customers’ price. What better industry to examine cost reduction than sourcing and procurement? LevaData stood out as an interesting company planting a flag deep into the performance economy.
Topics: SaaS, operations, Pricing, Software, metrics, performance economy
In the first of four posts exploring companies that are embracing the emerging performance economy we highlighted [24]7.ai. [24]7.ai is redefining the way companies interact with consumers by leveraging artificial intelligence and machine learning—and a performance-based pricing model—to deliver customer acquisition products and customer engagement products.
Topics: Pricing, Software, metrics, performance economy
Over a series of four posts, we’ll explore companies that are embracing the emerging performance economy. Aligned incentives and transparency of metrics are key to performance-based pricing that fuels this new trend. Technology and software are allowing business leaders to share both upside and downside risk with their partners, customers, and vendors.
Topics: Pricing, Software, automation, metrics, performance economy
SaaStr Annual 2019 was a little Burning Man, a little United Nations, and a lot of great ideas and sessions to help scale your business. Our team enjoyed networking, learning, and evangelizing how billing and revenue recognition can become a source of joy for businesses (not a hodgepodge of manual processes and disparate systems).
Topics: billing, SaaS, operations, Pricing, startup, build vs buy, performance economy
The technology stack you choose not only supports growth, it shapes it.
Software is such a integral part of the modern work environment that it impacts all areas of your business, from how you do things, to who you hire.
TLDR Version:
Topics: SaaS, operations, Pricing, Software
Price simplicity was once considered paramount to a successful SaaS pricing strategy. The advice was formulaic—establish a value metric, assemble a “good, better, best” tiered plan structure, provide people monthly and annual billing options, and you were off to the races.
“The pain point that every single B2B company shares is pricing.” – https://frontapp.com/blog/2017/02/13/how-we-de-risked-our-saas-pricing-strategy/
Things have changed. Oversimplification of your pricing model may cause your company to leave money on the table. This is because fast-growing businesses, regardless of size, often find they must serve different user types, each with their own willingness to pay, in order to grow.
Topics: billing, SaaS, operations, Pricing