THE VALUE & PRICING BLOG
The latest stories, blog articles, and pricing news from the Ibbaka team
Pricing after Merger and Acquisition Part 3: The M&A Pricing Checklist
Pricing after Merger and Acquisition Part 3: The M&A Pricing Checklist. In the 3rd and Final Post of our Pricing after Merger and Acquisition series, we provide a simple checklist to help you make sure you are covering off the key pieces. A checklist helps with alignment, allocation of tasks and makes sure that nothing falls through the cracks.
Pricing after Merger and Acquisition Part 2: Finding Pricing Alignment After a Merger
Pricing after Merger and Acquisition Part 2: Finding Alignment. In the 2nd post of our 3-part series of Pricing after M&A, we look at how to find alignment between the 2 organizations when it comes to pricing and market segment.
Pricing after Merger and Acquisition Part 1: Why Pricing is Critical to M&A Success
Pricing after Merger and Acquisition Part 1: Why Pricing is Critical to M&A Success. The 1st in a 3-part series on how to make sure that pricing contributes to the success of a merger. There are common challenges in post merger pricing. Roger Martin’s strategic choice cascade can be adapted to guide us through the critical choices are to be made.
Design your Free Offer to Generate Product Qualified Leads (PQLs)
One of the hot topics in Product-Led Growth (PLG) is the idea of Product Qualified Leads (PQLs). We have long had Marketing Qualified Leads (MQLs) and Sales Qualified Leads (SQLs). We now have Product Qualifies Leads (PQLs). How do you design your free offer to generate PQLs?
Driving Business Value Using a Value Pricing Dashboard
Pricing dashboards are a critical tool for managing pricing and connecting pricing to value. How does your company track this today? What will a state of the art value and pricing dashboard look like? Please contribute to our short survey.
The Art of Value Storytelling - Ed Arnold at PPS Spring 2022 Conference
Ed Arnold will be giving a talk at the Professional Pricing Society’s Spring Conference in Chicago on “The Art of Value Storytelling”. Ed has deep experience developing value models for B2B companies and using these models to inform pricing design. The model is what lies below the water, what most customers want to hear is the value story.
How to Write a Compelling Value Story
Value ROIs and value models are best communicated as a story. This is the ‘Art of Value Storytelling’. One approach to value storytelling uses ‘the hero’s journey.’ The hero of the customer value journey is not you or your software. It is the customer. Value storytelling makes the customer the hero of their own story.
Pricing for Net Dollar Retention (NDR)
As economic conditions change, Net Dollar Retention (NDR) has become a critical issue for many B2B SaaS companies. What role does pricing play in ensuring NDR? In this post, we look at why NDR has become an important concern and how to improve Net Dollar Retention.
What are the biggest challenges in introducing a new pricing model?
As companies innovate and adopt new growth models, they need to redesign their pricing models. Designing a pricing model is a difficult challenge. Many different perspectives and objectives need to be integrated. But once the design is done, the hard work starts. Ibbaka asked the Professional Pricing Society community about the biggest challenges.
How Growth Models are used together (Sales-Led Growth, Product-Led Growth, Service-Led Growth, Relationship-Led Growth, Community-Led Growth)
B2B companies use 5 distinct growth models: Sales-Led Growth, Product-Led Growth, Service-Led Growth, Relationship-Led Growth and Community-Led Growth. These models are often combined. How are they being combined? Sales-Led Growth is the most mature approach and uses the most different combinations.
Core Concepts: Value Driver
Understanding value drivers is critical to work in Product Management, Marketing, Sales and Customer Success. Value drivers come in 3 flavours: Economic, Emotional and Value. Understanding value drivers is central to effective pricing demand and value management.
Value Stories Work Better than ROI Claims
Value is central to the design, sale and support of B2B software. Sophisticated ways of understanding and measuring that value have been developed, from basic ROI calculators to sophisticated Economic Value Estimation models. But at the end of the day, we are human, and humans respond to stories. Converting value models into value stories is key to communicating value.
5 Growth Models and How to Price for Them
There is more than one way to grow your company. The 5 most common growth models today are Product-Led Growth, Sales-Led Growth, Service-Led Growth, Community-Led Growth and Relationship-Led Growth. Most companies will have a lead strategy and a supporting strategy. Each model has implications for pricing strategy.
When and how to change your pricing metric
The pricing metric is the unit of consumption for which a buyer pays for your offer. It should track the value metric. The unit of consumption by which a user gets value. Changing the pricing metric is one of the most important things you can do to transform your business. When should you change your pricing metric? How do you go about doing this?
Core Concepts: Value Path
The Value Path is a powerful metaphor that brings together processes, performance, business outputs, and organizational goals to focus on value creation. The value path is a series of steps that results in value for the customer or end-user.
Core Concepts: Willingness to Pay
Willingness to pay (WTP) is a popular term in pricing, but it should not be used when designing pricing. It is an outcome of good value-based pricing work and not something that can be optimized directly. Pricing experts who claim to optimize for WTP are leading their customers astray.
Introducing the Service-Led Growth Group on LinkedIn
Service-Led Growth (SLG) is a compelling growth model with a well defined growth flywheel. It is most relevant when introducing solutions to complex problems where a deep understanding of how the problem and solution fit together is important. Please join the Service-Led Growth group on LinkedIn.
Core Concepts: Value Metric
For pricing to be effective, it should track the value metric. The value metric is the unit by which the product or service offering is consumed that best reflects how the customer gets value.
How to price leadership training
How would you price leadership training? Most people price per person trained. Is that the right approach in all cases? Here we explore some different ways to design pricing for leadership training. In pricing, the first question is how is value delivered, the second question is what to price.
Core Concepts: Bundling
Bundling is when companies and organizations group together multiple products and services to be sold and managed together. Bundles are meant to make it easier for customers to buy complementary goods and services. They make it clear what goods and services belong together. If packages are product management’s concern, then bundles are generally managed by marketing.
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