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Selecting the Right Pricing Metric for Your SaaS Product

  • Writer: Jan Pasternak
    Jan Pasternak
  • Mar 20
  • 1 min read

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Choosing the appropriate pricing metric is a critical decision in SaaS pricing. The right metric can lead to higher revenue, better customer alignment, and improved customer satisfaction.


Capability vs. Consumption Pricing Models

  • Capability Pricing: Customers pay for access to specific features or capabilities, regardless of usage.

  • Consumption Pricing: Customers are charged based on actual usage or consumption.


How to Choose the Best Pricing Metric

  1. Alignment with customer value: The metric should clearly reflect how customers derive value from your product.

  2. Predictability: Customers prefer metrics that allow predictable budgeting.

  3. Measurability: The metric should be easily trackable and transparent to both you and the customer.


Real-life Examples

  • Helpshift vs. Kustomer: Helpshift chose Monthly Active Users (MAU) over traditional seat-based pricing to align more closely with customer value.

  • Mixpanel and HubSpot: Both companies shifted their pricing metrics to better match customer perceptions and enhance sales.


Practical Tip: Continuously validate and iterate your pricing metrics based on customer feedback and actual usage data.

 
 
 

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