THE VALUE & PRICING BLOG
The latest stories, blog articles, and pricing news from the Ibbaka team
Prioritizing NDR growth choices
With six levers to use to improve NDR where should you focus your effort? Make sure churn is under control then look for where you can have the biggest impact.
Why You Should Use Value Stories Instead of Conjoint Analysis for B2B Pricing
More and more B2B business are using conjoint studies to inform packaging and pricing. But conjoint studies were originally designed for B2C and caution is needed in extending them to B2B. Structured interviews using a value story can provide more actionable insights.
NDR Growth Tactics 6: Managing Churn
The sixth NDR lever is churn management. Churn is the great enemy of SaaS businesses and understanding why churn is happening and how to reduce it is a critical part of managing a SaaS business. Churn is the denominator in the equation for customer lifetime value.
NDR Growth Tactics 5: Reduce Package Down-sell
The fifth NDR lever is reducing downsell, where customers move from a more expensive to less expensive package. How can one avoid this, or at least minimize the impact? We explore this challenge here.
NDR Growth Tactics 4: Avoid Package Shrinkage
The fourth NDR lever is avoiding, or minimizing, package shrinkage. One thing that can reduce NDR is reduction in revenue from an existing package. What can we do to eliminate, or at least minimize, in package shrinkage?
NDR Growth Tactics Webinar | May 11, 2023
Join Karen Chiang and Steven Forth for a webinar on tactics to improve Net Dollar Retention, sponsored by Vantec, WUTIF and EFund. May 11, 2023 at 8:00 AM Pacific Time.
Selective Bias
Value is the driving force behind many actions—personal or business. As a result, we all carry a priority list organized around things important to us - the value that emerges from activities, products, services or engagements. Ibbaka Valio connects many elements into a compelling value story.
Generative AI, SaaS Innovation, Value and Pricing
Generative AI is attracting a lot of interest as an innovation platform. How will generative AI be used to create value? How will that value be priced?
NDR Growth Tactics 3: Promote Cross-Sell
The third NDR level is to promote cross sell. NDR applies at the customer level so cross selling will improve NDR. Cross sell can include both value added services and additional product lines. Both can have a big impact on revenue and profitability.
From Nowhere to Now Here
Tiny changes often result in unexpected results. But understanding those insignificant adjustments lead to appreciated outcomes, especially in pricing.
What flavor of AI will be used in pricing?
We have entered an AI renaissance. What flavours of AI will have the biggest impact on pricing over the next three years? Here are the top three candidates: predictive analytics, computational game theory, large language models.
SaaS pricing is model driven
SaaS pricing is sometimes described as data driven. It is actually model driven, with data being the raw material used to build and adapt the models. It is the interaction of three models that guides pricing. The value model, the cost model and of course the pricing model itself.
NDR Growth Tactics 2: Drive Up-sell
Companies optimizing NDR have six levers to pull, three positive, three negative. In this post we look at the second of the positive levers: driving upsell across packages.
NDR Growth Tactics 1: Grow in Package
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.
Managing Package Performance to Optimize SaaS NDR
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?
What is digital pricing?
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.
How OpenAI prices inputs and outputs for GPT-4
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.
Will pricing for profit lead to higher SaaS prices?
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.
Levelling up
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.
Trends in SaaS pricing from Q2 2023
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.
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