Navigating Metrics and Pricing in SaaS

This chapter explores the critical role of annual planning and reliable metrics in the SaaS industry, while addressing the challenges faced by accounting professionals. It also examines the complexities of success measurement and the delicate balance between ownership of outcomes and client perceptions in pricing strategies.

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Kyle Poyar, author of Growth Unhinged and a leading expert in pricing, packaging, and product-led growth, joins CJ for this episode. Together they explore the evolving landscape of SaaS metrics in the age of AI with a focus on the paradigm shift from access-based pricing to outcome-based models. They also examine success-based pricing and how to attach metrics to these models. The discussion delves into AI’s impact on ARR (annual recurring revenue), questioning its relevance in this new era and the implications of these changes for CFOs, who must now navigate more complex revenue structures and margins. As AI reshapes the industry, Kyle and CJ discuss the potential rise of professional services revenue, which SaaS metrics may fall by the wayside and what new metrics will emerge. This episode provides deep insights into the future of SaaS pricing in the age of AI and the metrics that will define success.

If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.

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SPONSORS:

Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.

Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.

NetSuite provides financial software for all your business needs. More than 40,000 companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅, head to NetSuite https://netsuite.com/metrics and get the CFO’s Guide to AI and Machine Learning.

Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.

Leapfin is accounting automation software that automatically prepares and posts reliable journal entries. High-growth businesses like Reddit, Canva, and Seat Geek choose Leapfin to eliminate manual tasks, accelerate month-end close, and enable accounting leaders to provide faster insights to help their companies grow. To automatically standardize your revenue data with measurable business impact, check out leapfin.com today.

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@cjgustafson222 (CJ)

@poyark (Kyle Poyar)

LINKS:

Growth Unhinged: www.growthunhinged.com

Kyle on LinkedIn: www.linkedin.com/in/kyle-poyar

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TIMESTAMPS:

(00:00) Preview and Intro

(01:50) Sponsor – Mercury | NetSuite

(06:05) AI Pricing Versus Conventional SaaS Pricing

(09:32) Defining an Agent or “Agentic” AI