How should generative AI applications be priced? We asked our community in a flash poll, here are the results and our point of view on the emerging best practices for monetization and pricing of generative AI applications.

Companies have begun to use generative AI applications to evaluate proposals. What does this mean for proposal generation and pricing? How can a value story help you score well when an AI is making recommendations?

Applications built on generative AI platforms have emerging properties and will need a new approach to pricing. Software applications are becoming composable, conversational and adaptive. Pricing needs to respond. A new approach to pricing is needed. Let’s call it generative pricing.

Value based pricing is the key to sustained growth in B2B SaaS. But having a value model and a value based price is just the beginning. You have to be able to communicate that value in a value story. The form of the value story evolves over the customer journey.

Certain pricing metrics are associated with AI applications. In this year’s PeakSpan Ibbaka Survey of NRR we are seeing pricing metrics associated with AI showing up in multiple verticals, a significant change from last ear.

Generative AI application monetization is still in early days. Michael Mansard from Zuora has done some hard thinking about this. He shares his insights in this Ibbaka interview.

There has been a lot of doom and gloom about trends in Net Revenue Retention. But there are still some companies driving extraordinary performance. We look at one example from the open PeakSpan Ibbaka Survey on Net Revenue Retention in 2024.

On June 5th, Ibbaka presented at PeakSpan’s Master Class series. We explored practical steps for building a robust value model, a key tool for value-based pricing. This model, crucial for sales, customer success, and product management, helps estimate economic value. In this blog post, we elaborate on questions from the session.

Will generative AI apps require generative pricing? And what might generative pricing be? We asked a generative AI to get a recursive perspective on this.

Net Revenue Retention depends on more than churn/retention. There are six factors that determine NRR. Which are you prioritizing? Take the PeakSpan Ibbaka 2024 NRR Survey and we will share out insights.

A recent poll found that 40% of pricing, design and product management leaders believe that generative AI will require new approaches to pricing. What might these new approaches look like? We explore this using concept blending with the help of generative AI.

Peakspan and Ibbaka collaborate each year on a survey to understand how B2B SaaS companies approach Net Revenuer Retention (NRR). The survey results are used to benchmark NRR performance by SaaS vertical and to help SaaS operators improve NRR performance.

The Mark Stiving and Steven Forth webinar attracted about 500 people and there were a lot of questions asked in the chat. This is the third of a series of posts where we answer these questions.

The Mark Stiving and Steven Forth webinar attracted about 500 people and there were a lot of questions asked in the chat. This is the second of a series of posts where we answer these questions.

The Mark Stiving and Steven Forth webinar attracted about 500 people and there were a lot of questions asked in the chat. This is the first of a series of posts where we answer these questions.

There has long been speculation that AI will enable a shift to outcome based pricing, overcoming objections based on attribution, predictability and accountability. Intercom’s pricing of its Fin AI Agent is evidence that this is beginning to happen. Will AI lead to outcome based pricing?

MEDDIC is a popular approach to lead qualification for B2B SaaS. The M stands for Metrics and itis often where sales struggles. Some even skip over this. The value based approach provides the tools needed to manage the M in MEDDIC.

NRR (Net Revenue Retention) is a critical metric for today’s SaaS companies. To help companies improve NRR, Ibbaka is introducing a Revenue Retention Maturity Model that will help companies improve their NRR performance. Learn about this critical new tool in SaaS management.

Value models integrate different types of information: about the customer, about the improvement claims, about the industry and economy along with assumptions that are part of the model. Bringing these different types of information together drives insights that are not available when the data is managed in silos.

Last fall Ibbaka research found that the most common pricing metric for AI applications was per user. This was confirmed in a recent survey by Kyle Poyar and Palle Broe for Growth Unhinged. What are the reasons for this?