In the dynamic world of customer value and pricing, finding the right words to capture complex concepts can be a challenge. The term “grok” and why we implemented this to our LinkedIn newsletter - explore the origins of this intriguing term and why it resonates with our mission to unlock the true power of understanding in value and pricing.

Reddit introduced API pricing in the spring of 2023. In many ways it was well motivated, but it generated a lot of community blowback and damaged Reddit’s reputation. What can we learn from Reddit’s experience?

Take control of your pricing with our upcoming Master Class with PeakSpan Capital. Our highly anticipated event is on “Pricing Diagnostics and Rapid Response” and will equip you with a practical action plan that empowers you to swiftly diagnose and take control of your pricing strategy.

Kyle Poyar at OpenView has proposed a new set of SaaS metrics to better measure Product Led Growth and diverse revenue streams. What are these new metrics? What do they mean for pricing design? Is Value to Customer (V2C) the missing metric?

The SaaS business model has matured. With this maturity comes slower growth, more competition, more scrutiny by buyers and procurement and the need for better price management and customer value management.

There are many ways to think about pricing as a game. One that helps us align pricing with innovation is the open game. What does it mean for pricing to an open game? How does it change how we build pricing capability?

We will be making extensive use of AI in pricing. In fact, we have been using some form of AI for many users as revenue management and pricing optimization engines are based on one form of AI or another. By the past year feels different, and the next three years will be different. What are the requirements for the ethical use of pricing in AI?

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.

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.

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.

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.

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?

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.

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 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?

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.

Tiny changes often result in unexpected results. But understanding those insignificant adjustments lead to appreciated outcomes, especially 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 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.

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.