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SaaStr 785: Usage-Based Revenue Models: Successes and Pitfalls from Checkr COO Lindsey Scrase on CRO Confidential

16 snips
Jan 8, 2025
Lindsey Scrase, COO of Checkr and former CRO with experience from Google, dives into the nuances of usage-based revenue models. She discusses the balance between sales commission structures and the need for alignment with revenue outcomes. Lindsey shares insights on evolving go-to-market strategies and leveraging data for operational enhancements. The conversation highlights the importance of customer engagement in achieving growth and improving satisfaction through effective onboarding and feedback loops.
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ADVICE

Focus on Revenue Realization

  • Focus on consumption and revenue in usage-based businesses, not just bookings.
  • Tie compensation plans to revenue realization to incentivize usage and adoption.
ANECDOTE

Incentivizing the Lowest Segment

  • Checkr's lowest segment sales team was initially incentivized on volume, not revenue.
  • Shifting their focus to revenue brought value to both the customer and Checkr.
ADVICE

Revenue Focus in Cadence

  • Incorporate a revenue focus into every part of your business cadence, not just bookings.
  • This helps ensure alignment between sales efforts and actual revenue generation.
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