Usage-Based Pricing: What Most SaaS Businesses Need to Know with Kyle Poyar

<p><strong>Kyle Poyar</strong> is the Vice President for Market Strategy at OpenView since 2016.  He is responsible for helping OpenView’s portfolio companies accelerate top-line growth through deep insights.  He leads segmentation, positioning, channel/partner strategy, new market entry, and packaging/pricing initiatives, partnering closely with portfolio leadership teams. He also covers OpenView’s SaaS metrics and benchmarking research.  </p> <p>Previously, he worked for Simon-Kucher & Partners as a Pricing Consultant for six years.  Kyle earned his AB Economics & Environmental Studies at Brown University.  He graduated Magna cum Laude with departmental honors in Environmental Studies.</p> <p>In this episode, Kyle shares how you have to charge based on a pricing metric that has a lifetime value to your business.</p> <p><strong> </strong></p> <p><strong>Why you have to check out today’s podcast:</strong></p> <ul> <li>Find out the many nuances of usage-based pricing and see where customers are seeing value and provide more of that</li> <li>Understand the nuances between consumers and businesses in terms of how they make purchase decisions so you create a long-term value and availability to expand customers over time</li> <li>Find out what forms part of your ARR (Annual Recurring Revenue) and track them to see the health of your business</li> </ul> <p><strong> </strong></p> <p align="center"><strong>“Really do the work to figure out what are the one or two usage-based metrics that correspond with the value your customers see. You might find that, hey, these are things where the customers you keep or that spend more tend to consume more of that, as opposed to the ones who churn tend to, you know, consume less of it. And think about how you could maybe incorporate that as like a limit or a fence from one package to the next.”</strong></p> <p align="center"><em>- Kyle Poyar</em></p> <p> </p> <p><strong>Topics Covered:</strong></p> <p>01:39 - Defining usage-based pricing</p> <p>02:34 - Usage-based pricing being a cust