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The Official SaaStr Podcast: SaaS | Founders | Investors
SaaStr 785: Usage-Based Revenue Models: Successes and Pitfalls from Checkr COO Lindsey Scrase on CRO Confidential
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.
41:30
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Quick takeaways
- Transitioning to a customer-centric approach fosters stronger relationships, enhancing customer loyalty and driving long-term growth for the company.
- Adjusting compensation structures to focus on revenue realization rather than bookings helps align sales goals with sustainable customer success.
Deep dives
Incentive Structures and Revenue Realization
Over-incentivizing sales representatives to secure customer commitments led to excessively discounted contracts, ultimately harming revenue realization. Adjustments were made to the compensation structure to focus on revenue, rather than just bookings or upfront commitments. By removing components that incentivized heavy discounting, the organization could align salesforce goals with long-term success and customer value. This change greatly improved revenue conversion rates, encouraging sales teams to prioritize customer engagement and sustainable growth.
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