Commerce Glossary

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What is Value Metric?

val - ue met - ric
noun
Is a pricing strategy that determines how you charge for your products or services. In order to determine the metric and price what you sell, it is necessary to consider the buyer’s perception of your services and how much he values them. So, in this case, it is mandatory to know your buyers, how they use your service and why they use it. A value metric is what and how you’re charging — per user, per 100 videos, per something that theoretically aligns with where your customer ascribes value from your product. They’re the most effective pricing mechanism you can have in the subscription world, increasing average revenue per user (or ARPU) across all-sized subscription companies - including those in both B2B and B2C. If you aren't using a value metric, you're losing out on some of your key revenue growth potential.

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