Metrics that Measure Up
The Evolution of Variable Pricing Models & Revenue Management with Apurv Bansal - Founder and CEO Zenskar
Nov 20, 2024
Apurv Bansal, Founder and CEO of Zenskar, a cutting-edge billing platform, discusses the shift towards variable pricing models like Usage-Based and Value-Based Pricing. He highlights the complexities these models introduce to billing, emphasizing the need for real-time integration of usage data to ensure transparency and customer trust. Apurv also shares insights on revenue management, the importance of customer experience, and challenges for early-stage SaaS companies. Additionally, he provides valuable advice for aspiring B2B tech founders, stressing passion and patience in entrepreneurship.
30:45
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Quick takeaways
- The shift towards usage-based pricing in SaaS requires sophisticated billing systems that integrate actual service use data for accurate invoicing.
- Enhancing customer experience through transparent billing reports fosters trust and retention, making usability a priority for modern billing platforms.
Deep dives
The Rise of Variable-Based Pricing
Usage-based pricing is transforming the billing landscape for SaaS companies, moving away from traditional subscription models. This model requires identifying service use from databases instead of just contract terms, complicating the billing process. For instance, if a service charges based on API calls, the invoice must leverage data indicating the actual number of calls made, leading to potential variances in billing amounts each month. As a result, companies now face the challenge of obtaining accurate usage data while maintaining streamlined invoicing processes.
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