OpenAI has released o1, it next generation approach to generative AI reasoning and problem solving. If you were OpenAI, how would you price this innovation? We summarize the results of a flash poll, give some analysis and provide our own recommendation.

Most companies monetizing generative AI are using hybrid pricing models where they combine more than one pricing metric. You can see that in the survey we are running to prepare for the Sept. 19 roundtable on monetizing generative AI. What metrics tend to be used together? We ran the data through a Leiden algorithm to find the clusters.

What is the revenue potential of your current customer base? This is your PER or Potential Expansion Revenue. This is an important number for SaaS growth leaders to understand. What percent of your PER are you realizing? How do each of the NRR factors impact your PER?

Here are some early insights from the survey we are using to inform our Sept. 19 roundtable on generative AI monetization. Michael Mansard, Kyle Poyar and Steven Forth will go deep into the trends in generative AI and how it us being monetized.

This September Ibbaka changed its pricing. We decided to be more generous in the number of value stories and pricing models included in each package. Why did we do this? How did we make the decision? How does this impact the price?

Checklists are a powerful planning and risk management tool. They are used when there is a complex process with many dependencies. Pricing transformation is such a process. Ibbaka has a checklist for introducing new packaging and pricing.

Join our Sept. 19 roundtable on generative AI monetization. Kyle Poyar from OpenView and Growth Unhinged, Michael Mansard from Zuora and Steven Forth will have an open conversation on how second generation applications are getting priced and monetized. Take this three minute survey and prime your questions for this important session.

Introducing a new pricing model is a strategic transition. How you price says a lot about your company. How you introduce new pricing communicates your value and your values. A good plan, embedded in an OODA loop, is the key to success.

NRR (Net Revenue Retention) performance varies widely. Here we share four examples from the PeakSpan Ibbaka NRR Survey for 2024. Understanding the performance of other companies can help you devise the strategy to improve your own.

How to monetize investment in generative AI is a critical question for B2B SaaS. Join Kyle Poyar from Growth Unhinged and Openview, Michael Mansard from Zuora and Ibbaka’s Steven Forth for this webinar which will define how companies can move forward and monetize generative AI applications.

Value models are the key to value based pricing and value based sales. What are the characteristics of a good value model? Ibbaka is exploring this with a group of experts. Here we go to the source and elaborate on Tom Nagel’s approach to value modeling and what makes for a good value model.

AI SDRs have been getting a lot of attention in rev ops and demand generation circles. We reviewed three of the top vendors in ‘Understanding how generative AI SDRs are revolutionizing sales development.’ In this post we use a generative AI to compare their pricing pages and unique selling propositions.

Generative pricing emerged as a response to the pricing requirements of second generation generative AI applications, but the five steps at the heart of the approach are generally applicable. They provide a foundation for a new approach to price optimization, one based on the value being delivered.

Sales led growth continues to be the dominant growht mption in B2B SaaS with more than 70% of SaaS companies relying on this approach. How will generative AI impact sales led growth? One place is early in the sales funnel. Sales Development Representatives (SDRs) are responsible for qualifying and prepping opportunities. Can this be done by AI?

Value, Usage, Price Cost. All of these interact to determine billing. The four together form the value diamond. Join Zenskar and Ibbaka on Wed, August 14th for a deep dive into how the value diamond can solve your NRR challenges.

The key to value based selling is for buyer and seller to collaborate on the value story. Doing this creates buy in and commitment on both sides. Value stories have an important role to play in supporting the MEDDIC approach to sales.

Value models are the way to connect the different business processes that deliver the customer experience. What is a value model? How are they used? In this pot we connect the dots.

Most SaaS companies know their Net Revenue Retention (NRR) number. They even know the trend. But NRR is composed of several different factors. It is not enough to know top level NRR. One needs to understand each of the six NRR factors, how they are trending and how they interact.

Generative pricing will come to dominate B2B SaaS pricing over the next decade, but most companies will begin by taking small steps to get there. The five steps are to (i) build a value model, (ii) use feature flags, (iii) map features to value, (iv) design a pricing model based on the feature-value mapping, (v) have pricing define configuration (or vice versa).

Generative AI is increasingly used to evaluate proposals. Before sending out a proposal an emerging best practice is to evaluate it and get recommendations for improvements using a generative AI application. In this post we show you how to prepare a rubric that will help in this process.