THE VALUE & PRICING BLOG
The latest stories, blog articles, and pricing news from the Ibbaka team
Look beyond costs when modelling value
Many companies focus on cost reduction as the easiest value driver to define. But there often cases where revenue is a more powerful value driver. Why do so many pricing and marketing teams default to cost value drivers? Revenue value drivers are playing a key role in green or sustainable solutions.
How to Capture the Right Value Metrics to Accurately Price Your Product
What data do you need to capture in order to design and manage pricing? Your value model holds the answer. Build a value model, identify the variables, and see which of the variables can be set through your solution.
What are the emerging value drivers for generative AI agents and how will they be priced?
Major generative AI vendors are looking for ways to make solutions more compelling, that is to say higher value. What are the emergent strategies? How are they creating value? How will this value get priced?
IDC Names Ibbaka an Innovator in Price Optimization for Usage and Recurring Revenue Models
IDC identified Ibbaka as one of its Innovators in the Price Optimization for Usage and Recurring Revenue Models space. Four companies are called out for their innovations in the space. Ibbaka is changing how companies build, manage and apply value models and use them in pricing, sales, and customer success.
Pricing AI: What role could AI play in pricing?
AI is changing what we price. That is the theme of our April 26 talk at the Professional Pricing Society conference in Chicago. But it is also changing how we price. Let’s open up our thinking and explore different ways we could apply AI to pricing.
TCO or ROI or Value - Which Can Justify SaaS?
Total Cost of Ownership (TCO), Return on Investment (ROI) and Value are ll used in price setting an justification. How are these related? Which approach works best? A value model is at the heart of a successful value program and critical to managing churn.
Protect Revenue Retention - Look at Churn
Churn is the first of the six Net Revenue Retention Levers to look at. Begin by understanding the natural rate of churn for your solution. If you are above the natural rate of return, then churn is where you need to focus. Ibbaka can help you use value and pricing to reduce churn.
Costs do not justify SaaS price increases - value does
SaaStr recently had a series of interesting posts on pricing. One of them tells the story of a new CRO justifying price increases because of higher costs. Is this ever a good move for a SaaS company?
Differential Diagnosis of Pricing Symptoms for Churn
Many companies start worrying about pricing when they encounter a symptom that they associate with a pricing problem. A classic example is churn. But pricing is only one of the possible causes of churn. Trying to fix churn by changing pricing will only work in certain circumstances.
The OG of Retention Metrics: Why GRR Still Matters
Gross Retention Rate (GRR) remains vital in the realm of SaaS metrics. Not only does it offers a clear insight into customer value and satisfaction, alongside Net Revenue Retention (NRR), but it serves as a crucial pillar for achieving long-term, sustainable growth. Track this metric religiously, integrate it as a KPI, and allocate resources wisely to enhance your gross retention trajectory over time.
What is driving your Net Revenue Retention (NRR)? Poll Results
NRR is the critical metric for SaaS companies and measures the organic growth from within the customer base. There are different ways to drive NRR: reduce churn, grow revenue with current customers and discourage revenue shrinkage. As we near the end of Q1 2024, what are SaaS companies prioritizing?
The Psychology of Pricing: The Power of Fairness
One of the factors that determines willingness to pay (WTP) is perceived fairness. In this post Edward Wong looks into what companies need to do to make there their pricing is seen as fair.
Should you include a price increase rider? - Poll Results
Should B2B SaaS contracts include automatic price increase? Ibbaka shares poll results and gives some guidance on if and when to include such a clause.
Navigating Price Adjustments: When to Raise Prices Amid Rising Costs
Are you facing the age-old question: Should you raise prices when your costs go up? Dive into our latest blog where we embark on a thrilling journey through the world of pricing dynamics and cost management. Join us as we unravel the mysteries of sunk costs, variable expenses, and the delicate dance of pricing strategies in the SaaS world.
PeakSpan Master Class: Optimize Pricing & Packaging to Minimize Churn led by Karen Chiang & Steven Forth
Churn sucks the life out of SaaS business models. In this PeakSpan Masterclass Karen Chiang and Steven Forth will diagnose the root causes of churn and how to use packaging and pricing to reduce churn and improve Gross Revenue Retention (GRR).
How is Generative AI Being Applied? - Poll Results
Where are people applying generative AI solutions? Ibbaka conducted a quick linked in poll to explore this. Here are the results. Not surprisingly, improving internal business processes is the most common use of generative AI today.
SaaS Valuation and Early Exits: An Interview with David Rowat of Strategic Exits
When should you sell your SaaS business? What will determine the value? How important is Net Revenue Retention? How is AI and generative AI changing the environment? Get insights from David Rowat of Strategic Exits.
Deconstructing SaaS discounting
Discounting is a fact of life in B2B SaaS. If you are going to discount, how should you do so? A fine grained approach can pay big dividends. First unpack discount to reflect the structure of your offer. Then repackage discounts to align with your business strategy and how you negotiate.
AI Pricing: What does Box AI tell us about AI pricing trends?
The layering in of AI has led Box to adjust its pricing. What can we learn from this that will help us to price other AI powered solutions?
What to price? Products, Use Cases, Value Paths - Poll Results
Our thoughts on what to price, products, use cases or value paths seem to have struck a nerve. We did a LinkedIn poll on this theme and got more than 300 responses in 24 hours. Pricing of value paths is much more common than we expected.
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