Companies optimizing NDR have six levers to pull, three positive, three negative. In this post we look at the first of the positive levers. Grow in package.

To optimize Net Dollar Retention (NDR) one needs to track package performance closely and optimize monthly. What should be tracked? What actions should be taken?

Digital transformation requires digital pricing. Digital pricing is model based, data driven and adaptive. Digital transformation will not be transformative if it is not based on value.

GPT4 and other Large Language Models (LLMs) are driving innovation across the B2B SaaS sector. But how will these foundational technologies be priced and how will this impact SaaS prices generally? We take a look at the pricing model for GPT4.

What will SaaS prices for over the rest of 2023? In Q1 many companies raised prices. The general consensus is that these price increases will continue. Ibbaka thinks SaaS price changes will diverge. Only companies with differentiated value in certain categories will be able to push through price changes.

Change is necessary for the design process to continue. Without change, we are often stuck in the same pattern. Websites used to last for a couple of years, but now, the need to remain relevant takes on another meaning. Regardless of the process, it is refreshing for the team, but even more, for the audience.

What will SaaS prices for over the rest of 2023? In Q1 many companies raised prices. The general consensus is that these price increases will continue. Ibbaka thinks SaaS price changes will diverge. Only companies with differentiated value in certain categories will be able to push through price changes.

Ibbaka's website is now easier to navigate and provides a wealth of valuable information on the company's services and expertise. This fresh update demonstrates Ibbaka's commitment to staying at the forefront of innovation and delivering the best possible user experience to its clients.

Historically most SaaS companies have focussed on revenue and not been concerned with margins and costs. This was the result of a revenue growth focus and relatively high margins. With the paradigm shift in SaaS, this has changed, and costs are being factored into models and tested at different scales.

In a tough stretch for the tech sector AI, and especially content generation AI, has been getting a lot of love. This is only sustainable if these AIs are creating value and that value can be priced. How can we do this?

Pricing and customer value management is an emerging business practice that manages value to customer (V2C) over the lifecycle of the customer engagement. Managing value entails creating, communicating, delivering, documenting and then capturing a fair share of the value created through pricing. Help define this category by participating in this survey.

Pricing model has a big impact on revenue growth. And as the business environment changes the pricing model should change too. The Maxio Institute has recently published its 2023 Growth Market Report. We look at the lessons this has for pricing design and execution at SaaS companies.

SaaS companies have typically had high gross margins and have seldom considered costs when designing pricing. Is that still sustainable in the changing economic climate? When designing pricing, test to see how value, price and costs change with scale and make sure that your pricing stays aligned as you grow.

Making pricing decisions on average value is a mistake. Always go into the data and look at the distribution. Different distributions (normal, fat tails, skewed, multimodal) suggest different pricing actions.

Pricing is the most powerful way to improve SaaS business performance. Yet many companies hesitate to act as they lack a process for designing pricing and confidence in the outcomes. Ibbaka gives you the frameworks, insights and tools you need to price with confidence.

Open.ai’s wildly popular ChatGPT application announced a paid version on February 1, 2023. ChatGPT Plus as it is called will be available at US$20 per user per month. This is no doubt the first step in the pricing of ChatGPT and complements other ways that Open.ai prices its models.

There has been a paradigm shift in how investors are thinking about their B2B SaaS portfolio. The changing economic climate and higher interest rates are leading investors to pay more attention to NDR/NRR (net dollar retention or net revenue retention), gross profit and cashflow. This is cascading through to changes in pricing strategy.

Every successful platform eventually sees its core functionality get commoditized. There are two completely different strategic responses: 1. separate new high value functionality from the platform or 2. use the new high value functionality to defend the platform price. Be clear which approach you are taking as one can cancel out the other causing both to fail.

Given that unit price will change with volume for many products in many markets, how does one design a pricing model that takes this into account. There are several design choices to make. Getting these wrong will suck profit out of your revenue.

Net Dollar Retention (NDR) or Net Revenue Retention (NRR) is a key metric that investors are using to measure the health of their portfolio companies. Pricing and packaging has a big impact on this metric, but not always in the ways one expects. How can pricing help improve NDR?