Northstar Usage-Based Pricing Rollout
18-month pricing model for a B2B software company deciding whether to introduce usage-based tiers. All company names, terms, and financial figures are representative. This is an anonymized example of the live web dashboard included with every engagement.
Scenarios
Click to compare outcomes
NPV Sensitivity ($K)
Price lift (columns) x monthly churn rate (rows)
| Churn ↓ / Lift → | 0% | 3% | 5% | 8% |
|---|---|---|---|---|
| 3% | 1040 | 843base | 704 | 532 |
| 4% | 880 | 692 | 558 | 391 |
| 5% | 721 | 541 | 412 | 248 |
| 6% | 563 | 388 | 261 | 102 |
Decision Levers
Ranked by financial impact. Each lever is specific to this engagement.
| Lever | Current | Recommended | Impact |
|---|---|---|---|
| Usage tier breakpoint | No usage tier; largest accounts pay flat plan | Add tier above 250K monthly events | +$112K NPV from high-volume accounts |
| Annual commitment discount | 10% discount offered broadly | 7% discount only above $18K ARR | +$64K NPV while preserving conversion |
| Grandfathering window | Immediate migration for existing customers | 90-day notice plus renewal migration | Reduces churn-shock downside by $410K |
| Customer success coverage | Reactive support for top accounts | Proactive outreach to top 80 accounts | +$52K NPV from churn protection |
Rollout Economics
Usage-based rollout case: incremental contribution after churn and support cost.
18-month contribution
$1.57M
incremental gross contribution
Month 18 run-rate
$155K
monthly contribution exit rate
Decision insight
Stage it
rollout beats big-bang migration
Pilot
Months 1-6
$291K
Validate pricing tiers with low churn risk
Migration
Months 7-12
$493K
Move high-volume accounts into usage tiers
Scale
Months 13-18
$782K
Expansion revenue compounds after adoption
What else ships with every engagement
- ✓Custom Excel workbook (same analysis, fully editable)
- ✓Assumption inputs with color-coded cells
- ✓Sensitivity tables with two adjustable axes
- ✓Decision levers ranked by NPV impact
- ✓Methodology sheet with formulas explained
- ✓First revision included
All figures, company names, and deal terms in this sample are representative and anonymized. Actual deliverables are built from your specific materials and intake responses.