David Spitz

At the #StripeSessions conference this week they pointed out a huge shift that will change #CustomerSuccess dynamics forever.
 
 82% of SaaS companies, in a survey conducted late last year, said they plan to or already do charge by usage. 
 
  What does that mean as we shift from subscription revenue to transactional revenue?
 
 ✔ Sales will sell the right to do business, but CSMs will be responsible for generating the revenue. After all, if customers sign up but don't use it, the deal is worth $0. Comp plans should reflect this for both teams.
 ✔CS performance and business contribution are most commonly measured by NRR or GRR- Recurring Revenue. Different KPIs are needed for goal setting and performance management when some or all of the revenue is transactional.
 ✔Tooling needs to improve in many cases to help CSMs not just understand how customers are using what they bought but to give insights into the rate of consumption relative to the potential.
 ✔ The more they use, the more they pay. So the ROI has to be clearer because customers are fundamentally disincentivized from using your product unless they understand the value throughout the term, not just at renewal time. 
 ✔ This shared risk model is better for customers but far less sticky for solution providers. Forecasting can be challenging and CSMs will need better training in order to roll up accurate info for their leaders to manage financials. 
 
 What else will this change? 👇