Monetisation · Revenue model · Component
The metric decision
What the customer is charged for — the unit of value — decided explicitly rather than inherited from whoever was here first.
The deliverable
What it is
The metric is a more consequential decision than the price. Charging per seat, per transaction or per outcome produces different customer behaviour, different growth and different arguments at renewal.
Three tests apply: does it move with the value the customer receives, can both sides measure it without dispute, and does it avoid penalising the behaviour you want.
One level in
What it is made of
Each element is a constituent part of the component. Follow one to see the attributes it carries.
The metric
The unit that is charged for, defined precisely enough that both sides count it the same way.
3 attributes: Metric · Metric family · Counting rule
LearnThe value tracking
How well the metric moves with the value the customer actually receives.
3 attributes: Tracking quality · Value delivered · Mismatch
LearnThe behaviour check
What the metric encourages customers to do, including what it discourages.
3 attributes: Encouraged behaviour · Discouraged behaviour · Alignment
Learn
Ask what behaviour the metric teaches. A metric that discourages the usage which makes customers successful is expensive.
The other components in revenue model
The stream map
Every distinct way money arrives, including the small ones that were never designed and are rarely reported.
LearnThe incentive check
What the revenue model makes the organisation itself do — which is at least as consequential as what it makes customers do.
Learn