I recently spoke with a product manager who was frustrated with the close ties between metering and pricing in her organization. This interconnectedness was causing significant misalignments between the finance, sales, and engineering teams. Here’s why: In traditional billing platforms, metering is tightly integrated with pricing. This leads to various challenges: ➡️ Engineers have to manage usage tracking while being forced to grasp pricing logic, diverting their focus from core product development. ➡️Finance teams are heavily reliant on engineers to set up and maintain accurate metering infrastructure, which slows their ability to iterate quickly on pricing strategies. ➡️This complexity is compounded by the sales team’s need for flexibility in pricing configurations, limiting their ability to respond to customer demands and close deals faster. However, by decoupling metering from pricing, you can create the most flexible environment you can conceive. 1️⃣Engineers can focus solely on improving data accuracy and usage tracking without needing to integrate complex pricing considerations 2️⃣ Finance teams can independently manage pricing models, whether pay-per-use, tiered, or custom, without relying on engineers. 3️⃣ Sales teams can propose and implement customer-specific pricing strategies (e.g., based on API calls, GBs stored, etc.) seamlessly without requiring technical changes. Clear boundaries between metering and pricing can facilitate improved cross-functional collaboration, drive growth, and optimize revenue. By decoupling, teams can innovate faster, meet customer needs, and remove the roadblocks to growth. Have you also been hassled by a coupled architecture? DM to share your experience. #Billing #Pricing #Finance #Decoupling #Revenue
Apurv Bansal’s Post
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🚨 The biggest reason why changing your pricing is complex 🚨 Your billing can only be as accurate as the usage data and pricing information fed into it. But legacy billing tools today offer very limited capabilities to handle usage-based or hybrid pricing models, given their approach to handling usage data. A common mistake SaaS companies do today is to allow their usage metering to be tightly coupled with billing. When that happens, engineers would need to go out of their way to deeply comprehend how the usage is priced. This increases dependency on engineers to make simple pricing changes. Developers then tend to become gatekeepers of the platform. It only creates unnecessary bottlenecks in the process. 💡 Now, how do you solve it? The answer is — Decoupling. ➡ Decoupling means billing/pricing and usage metering modules are independent systems that data can flow in between. ➡ This decoupled nature of billing/pricing and usage metering allows you to modify one without affecting the other. ➡ This approach makes it easy to separate ownership between the engineering team and the finance team. Engineering can own metering and finance can own billing. As a result, a sales director will be able to price freely to solve business problems, without needing to involve engineers. At Zenskar, our billing architecture effortlessly enables massive flexibility in pricing models and natively handles usage data, eliminating the need for engineering efforts. Using us, companies can experiment with pricing strategies, adapt to market changes, gain real-time metrics visibility, and maximize revenue all while delivering unique value. DM me to book a demo and know more :) #CFO #billing #pricing #finance
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Co-founder & CEO of Schematic | helping AI developers with feature management and pricing infrastructure
We're beginning to release our first case studies at Schematic, which has been energizing. When we interview a customer for a case study, we try to learn about 4 things: 1️⃣ How do they talk about the service internally? 2️⃣What problem(s) led them to looking for a solution? 3️⃣ What impact did solving the problem have on the business? 4️⃣ What were decision factors & requirements? Here's what we learned from one of our customers last week: Internal Description: "Internally, we refer to Schematic as our source of truth for managing all aspects of packaging, from launching and entitling to metering and provisioning features and plans." 📦 Business problem(s): - Hard-coded pricing and packaging in their app resulted in significant technical debt as business requirements evolved. 🔧 - Utilizing multiple billing tools for different sales motions. 💼 - Managing numerous legacy pricing tiers, complicating customer lifecycle management. 🔄 - Inadequate visibility into customer entitlements/permissions. 🔍 - Major system overhauls needed for any pricing or packaging adjustments, affecting 4-5 key business systems. 🛠️ Business Impact if problem(s) solved: "The solution needed to significantly reduce the engineering burden and increase business agility, which is expected to lift average contract value (ACV) per customer and improve net dollar retention (NDR)." 📈 Decision Factors & requirements: Buy vs. Build decision. The primary requirements were: - Reduce dependency on engineering for entitlement support. 👨💻 - Deliver consistent and transparent customer experience across all tiers. 🌐 - Deliver faster implementation of monetization initiatives. ⏩ - Increase customer retention & expansion through better usage visibility. 🚀 - Be easy to use for business users in product and operations to manage monetization flexibly. 🖥️
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💰 Unlock the secrets of revenue optimization and automated billing. Join us May 7 at 1:00 PM ET as we delve into the challenges that companies encounter in maximizing revenue streams and explore strategies to overcome them. 📈 #revenueoptimization #automatedbilling #Order2Cash
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Enterprise Sales Director @ The Hackett Group | Corporate Advisory | Executive Advisory | AI Advisory | Digital Transformation
💰 Unlock the secrets of revenue optimization and automated billing. Join us May 7 at 1:00 PM ET as we delve into the challenges that companies encounter in maximizing revenue streams and explore strategies to overcome them. 📈 #revenueoptimization #automatedbilling #Order2Cash
Welcome! You are invited to join a webinar: Optimizing Revenue Capture and Customer Satisfaction with Next-Gen Order-to-Cash Technologies. After registering, you will receive a confirmation email about joining the webinar.
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"The Importance of Revenue Management in Today’s Business Landscape" Having worked in the Revenue Management field as a Software Developer for over a year, I’ve come to appreciate how crucial it is for businesses to optimize their revenue strategies. From dynamic pricing to forecasting trends, technology plays a key role in helping companies make data-driven decisions. It’s fascinating to see how innovative tools and algorithms are shaping the way businesses operate in competitive markets. What trends or technologies do you think will define the future of revenue management? I’d love to hear your insights! #RevenueManagement #Technology #Innovation
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3moIf only decoupling metering and pricing was as easy, when pay per use model is followed.