Consumption Model
topic on 3 shows · 7 statements across 5 episodes
Masters of Scale 
the Official SaaStr Podcast 
20VC
6 statements about Consumption Model, every show
Degnan: Sales teams in consumption models must be incentivized on usage
“I think like you have to go in and you have to then sell, like in a consumption model, you have to get usage. So like we talk about forward deployed engineers. Okay. Well, that's an ideal situation to deploy a forward deployed engineer or professional services…”
Paying reps on bookings in consumption models drives severe churn
“I'm paid off of bookings, so maybe they're only going to consume 50, but I think I can get them to commit to a hundred. Can't fault the sales guy. He wants to get paid, so he's going to go book a 100,000 dollar deal, and then a year from now, you're in deep sh…”
Lenta: Databricks pivoted to a consumption pricing model during COVID-19
“And then at the beginning of COVID, we decided to change the whole company. We said we're not going to value that anymore. We want to be more customer obsessed. And so we pivoted the entire company to a consumption model.”
Lenta: Enterprise sales injects friction, whereas consumption models must remove it
“Because where enterprise sales is about injecting friction, like value engineering, or proof of concepts, or business cases into the sales process, when you move to a consumption model, it's actually about removing friction. It's about doing exactly the opposi…”
Lenta: Consumption pricing models are best for customers, full stop
“Consumption economics is the way to go, right? Consumption models are the best thing for your customers, full stop.”
Schultz: Adopting consumption models requires cultural transformation, not just pricing changes
“And again, I think many organizations think of this as kind of a pricing model change or a billing model change, but we have learned and I have learned over the years, it's actually so much more than that. It really takes a cultural change and kind of a mindse…”