Bonus / Comp metrics for tech-touch, monthly subscriptions?

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Liam Dunne
Liam Dunne Member Posts: 8 Contributor
Hi all,

I work for a product-led SaaS, the majority of our users purchase without even speaking to a person. This means we have a lot of customers on monthly subscriptions and we operate one-to-many relationships. Our largest customers, a small chunk of the overall base, have a 1:1 relationship.

Our pricing is based on the number of devices a customer has, so managing MRR expansions and contractions is difficult. Our users can change their licenses easily inside our platform and we can't control how our user's infrastructure changes. Because of this, I want the comp plan to be focused on retention and we will review it once we release more bolt-on modules and strengthen our up-sell opportunities.

Looking at industry benchmarks, our monthly churn is decent but we're keen to improve it further. My initial thought is to track a churn metric and a performance objective (referrals, reviews, success stories, sales reference, etc). As both Net MRR and Gross MRR consider expansions and contractions, I'm leaning more towards our Customer Churn Rate as the churn metric.

I'd be interested to get the input of others who have gone through a similar process.

How are you incentivising your CS team when a tech-touch strategy is involved?
Do you have a team bonus or are you rewarding based on the segment?
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  • Ed Powers
    Ed Powers Member Posts: 180 Expert
    Photogenic 5 Insightfuls First Anniversary 5 Likes
    edited October 2021
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    @Liam Dunne, I'm sure you'll get a lot of comments reflecting conventional thinking on this subject. If you're open to a contrarian view, consider what the science says about the behavior of complex systems and the nature of intrinsic and extrinsic motivation. Be sure to listen to how some CS leaders have implemented these ideas in their comments at the end: https://youtu.be/7X5_7ms0R50