Finding Your First Value Metric (Part 2)
How early-stage founders can identify and test pricing models with a limited customer base.
DEAR STAGE 2: We’re still early and haven’t found the usage value metric that correlates with customer outcomes. What’s the best way to identify and test value-based pricing when you only have a few customers? ~FINDING THE RIGHT METRIC
DEAR FINDING THE RIGHT METRIC: Welcome to one of the most misunderstood (and most important) parts of early go-to-market: picking a value metric.
It sounds simple in theory. Just charge based on the value your customer gets. But when you’re still validating your product and have only a handful of customers, it can feel like trying to spot constellations with a flashlight. I asked Kyle Hart, CEO of Juicer, founder of Rowan Insights and the former pricing lead at Toast, how he advises early-stage founders to approach this exact challenge.
Here’s what Kyle recommends.
Stop Searching for the “Perfect” Metric
Kyle’s first piece of advice? Let go of the idea that you’ll find the one magic metric that correlates to value for every customer.
You don’t need a perfect answer. You need a useful approximation that works today and can evolve.
A solid value metric doesn’t just reflect value; it needs to be measurable, understandable, and trusted by your customers.
In early-stage deals, sometimes the “metric” you anchor around is a proxy for value: number of users, reports generated, or workflows completed.
Kyle shares, “You’re looking for the clearest line between what you charge for and what your customer cares about. If it takes three mental steps to get there, it’s probably too indirect.” –
Use Your Existing Customers as a Testing Ground
Even if you have just a few enterprise customers, there’s gold to be mined:
Look at how those customers are using your product, and ask:
Where are they spending the most time?
What features or actions do they say drive value?
What would break their workflow if removed?
Run customer interviews focused on outcomes. Ask:
“What would you say this product helps you accomplish?”
“How do you explain the benefit to your CFO?”
“What’s the most valuable thing this helps you do faster or better?”
Try a Two-Part Validation Approach
Kyle shared a practical research trick you can run even with a small user base:
Step 1: Ask customers to rank the value propositions that resonate most with them (e.g. faster workflows, better visibility, reduced errors).
Step 2: Then ask them to rank the metrics that would best correlate with that value (e.g. # of workflows automated, # of reports delivered).
If the same value prop and metric show up together across multiple interviews, you may be onto something. This also helps you avoid the biggest trap in value-based pricing — anchoring to something you care about instead of something the customer sees as a win.
If You Can’t Charge on It, Measure It Anyway
You may not be ready to price on outcomes, but you can start tracking them today.
Collect usage and outcome data over time and watch for patterns.
Kyle recommends segmenting by customer type and watching how usage maps to success signals (e.g. retention, renewals, expansion).
When trends emerge, you’ll be better equipped to pilot new pricing strategies with confidence.
Kyle noted “I often create a pricing page mock-up as a hypothesis, and then test how prospects and customers react, even if it’s not live yet.”
Design for Flexibility, Not Perfection
The best pricing models evolve. Early on, your goal is to create a structure that helps you learn, not lock yourself in:
Start with broad tiers tied to basic metrics.
Bake in options to test add-ons, usage-based upsells, or outcome-aligned modules.
Use qualitative feedback and actual usage to validate
You don’t need a giant customer base to find your first strong value metric. You need tight customer relationships, thoughtful interviews, and a willingness to iterate. Trust what your customers are telling you and what they’re doing in your product.
Thanks again to Kyle Hart for the frameworks and tactical advice. If you’re in the early stages of your pricing journey, Kyle’s one of the most practical minds in the game.
Have a wonderful holiday! I’ll be back with more Dear Stage 2 on January 3rd.