The 2nd excerpt from the Ibbaka eBook Pricing Strategy for 2023. The economic landscape has changed in important ways and these changes will shape pricing strategy in 2023. Inflation, higher interest rates, the threat of a recession, supply chain challenges, the lack of talent and competitor actions all need to be taken into account.

In the summer of 2022, long years of work on AI content generation exploded into the mainstream. In 2023, billions of images will likely be produced by systems like Dall-E and Stable Diffusion. How will AI content generation deliver value? Is this category creation or disruptive innovation? How will these systems and the images they generate be priced? The 3rd part in Ibbaka’s series on Pricing and Innovation.

Service-Led Growth is a concept blend of Product-Led Growth and Strategy Consulting - it draws on the most powerful ideas in each approach. Concept blending is a powerful tool for innovation across all growth models. We invite you to explore the power of service-led growth and think about how it can apply to your business.

2023 will be a pivotal year for pricing strategy. The trends of the last few years will come together leading to fundamental changes in the operating environment. Pricing will need to change as well. The 1st in a series of posts to help investors, boards and C-level leadership prepare.

Pricing and value management can play a key role in giving direction to innovation. Value drivers are one way to do this. Does the innovation augment an existing value driver or create a new one? Does it do this for existing users or for new users? Understanding value is the key to successful value creation and capture.

One of the most crucial roles in a subscription business is customer success. Communication of the value offer to the customer and ensuring that the value promised to the client is fulfilled are the responsibilities of customer success. Healthy renewal rates, increased Customer Lifetime Value (LTV), and more success with up-sell and cross-sell opportunities are all ensured by consistent value communication and measurement of value supplied to the customer.

As the economy shifts, the key goals for pricing are changing. Net Dollar Retention (NDR) has come to the fore for many companies. Growth models are shifting as buyer behaviors change.

One of the background conversations at the Professional Pricing Society’s Fall Conference was ‘what do we mean when we say '“pricing optimization”?’ There are several ways to interpret this common term. What do pricing professionals mean?

Market dynamics can change in a recession and a change in market dynamics can motivate a change in pricing strategy. Market dynamics differ by segment and customers can change segments with a recession. Prepare for 2023. Think through how a change in market dynamics could require changes to your pricing strategy.

The Professional Pricing Society had its Fall Conference in San Francisco October 20 and 21. Here are some of the key themes and some memorable quotes.

Some are predicting a recession in 2023. With recessions, one often sees market consolidation. The number of potential customers, or the number of pricing units, or both, can decline. This has implications for both pricing and growth models. Leaders need to be prepared to respond.

As you plan pricing actions for 2023, take into account more than one scenario. Two of the critical uncertainties are around interest rates and economic growth. These combine to call different value drivers to the top of a buyer’s mind. The relative importance of different value drivers for target segments has a big impact on pricing strategy and execution.

Innovation is a core capability for companies as they adapt to the changing economy. Pricing experts could make a big contribution to directing innovation towards creating differentiated value but they seldom do so. To really engage with innovation leaders, pricing experts need to understand the various innovation frameworks and add value to them.

Growth demands that both trust and value are well realized by your customer. Customers are expecting value to be delivered to them and the Service-Led Growth model can drive higher, sustainable, and predictable growth (revenues). This is especially true when customer centricity relies on the synergy between expertise, platforms, and insight to drive the business relationship that in turn drives monetization. The SLG model can be a more powerful way to increase and accelerate value delivered as customer relationships mature over time.

Some companies think that price increases will be easy in 2023, given the expectations created by inflation. They are wrong. Inflation is different in different industries and in some cases inflation makes it harder to raise prices as people become more cost conscious. Ibbaka can show you if and how you should raise prices.

While on medical leave, I had a chance to take a step back and think about emerging issues and best practices in pricing. I put down some of these thoughts in a series of posts on LinkedIn: Pricing Generic AI, Pricing Microservices, Organizing Value Drivers, Integrating Pricing Models, The 4Cs of Pricing. I also shared some thoughts on design from my stay in hospital.

According to SaaStr, more than 50% of SaaS companies plan to raise prices in 2023. A price change is a good chance to realign price and value and to adjust packaging. Do SaaS companies know how to do this? Here are 5 Key Steps.

B2B companies now have a consistent method for their sales teams to assist their buyers in making a case for investment. Customer Value Management (CVM) has provided our customers with a solid foundation for increasing revenue faster in the future.

Product-Led Growth (PLG) and Sales Led-Growth (SLG) are the 2 dominant growth models. In fact, they are often complementary. Can the same pricing model be used to support both growth models? Well, 'it depends.' We look at when and how to leverage a pricing model across PLG and SLG.

Fixing poor sales or pricing performance doesn’t have to be hard! Many of these challenges ultimately are centered around understanding the customers biggest pains, and the real value of solving those problems. In this article, we help you take a methodical look at why sales teams lose deals and what to do about it.