The metric you want to get right the most:
the value metric

The innovations that meet or exceed their revenue targets are those that align their pricing and monetization metrics with the value metrics of their buyers. A value metric can be defined as the dimension along which your customers benefit from your offering. A monetization model that is aligned with your customers’ value metric allows you to grow as your customers’ businesses grow. Sometimes innovating your monetization model with a new value metric can be the source of innovation itself.

The right value metric drives monetization faster than acquisition.

The principles of a good value metric are:

  1. Customers who benefit more should pay more.

  2. A good value metric benefits both you and  the customer.

What’s the value metric that would allow your revenues to grow as your customers' businesses grow, if you acquired no new customers?

What are the norms & purchasing units of your particular space?

How do your different types of customers benefit from your offering differently?

Which pricing metric drives your customer adoption & profitability goals best?

Which metric is the simplest to communicate your value & estimate your customers’ cost?

Once you determine your primary metric, what are the other fences, caps, and triggers with which you can drive monetization and mobilization across different pricing options?

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