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Building Outcome-Based Pricing Models for Financial Applications: Strategies and Best Practices

Publisher IDC
Published Oct 15, 2025
Length 14 Pages
SKU # IDC20481062

Description

This IDC Market Perspective examines outcome-based pricing models in financial software, emphasizing alignment of vendor compensation with customer success via micro-KPIs. It outlines strategies for metric selection, technology integration, and flexible pricing to enhance efficiency and customer loyalty."Where it makes sense, shift from selling software features to delivering measurable financial outcomes. Outcome-based pricing aligns vendor success with customer value, transforming partnerships in the financial software industry." — Kevin Permenter, research director, Financial Applications, IDC

Table of Contents

14 Pages

Executive Snapshot

New Market Developments and Dynamics

The Strategic Shift to Value-Driven Pricing in Financial Software

The Power of Customer Micro-KPIs: Defining and Selecting Key Indicators of Success

The Foundational Role of Technology: Building the Infrastructure for Effective Micro-KPI Monitoring

Structuring Outcome-Based Pricing Around Customer Micro-KPI Achievements: Exploring Different Models

Identifying Relevant Micro-KPIs for Diverse Customer Needs Through Collaboration

Establishing Robust Measurement and Tracking Mechanisms (Including Data Privacy)

Designing Outcome-Driven Contracts and Incentives with Clear Legal Frameworks

Communicating Value and Selling Outcome-Based Pricing: Leveraging Case Studies and Testimonials

Conclusion: Embracing a Value-Aligned Future with Scalable Micro-KPI-Driven Pricing

Case Study: HighRadius and Outcome-Driven Accounts Receivable Transformation

The Challenge: Navigating the Murky Waters of Traditional AR

The HighRadius Solution: An Outcome-Driven Partnership

Micro-KPIs as the Compass for Value Delivery

Tangible Outcomes and Measurable Impact

Advice for the Technology Supplier

Getting Started: A Practical Road Map to Outcome-Based Pricing

Internal Assessment: Laying the Groundwork

Customer Engagement: Collaborative Exploration

Pilot Program Design: Testing the Waters

Iterate and Learn: Refining the Approach

Scalability Planning: Preparing for Wider Adoption

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