Last week, I asked, “Is your sales team blocked on positioning value?”

To build a value-based culture, you need to make sure that your sales team is prepared and ready to execute on your value-based pricing strategy. In our line of work we often find that sales teams are unable to transparently position and communicate the differentiated value of the offer they are trying to sell. They also feel poorly supported in doing this. If people are not comfortable positioning price in the context of value it is difficult to win sales without discounting and to build the value of the business.

Pricing is where all marketing and sales efforts are truly tested. It is the key metric that drives other economic measures. Lifetime customer value (LTV), revenue (including ARR if you are  SaaS based), and profitability all depend on your pricing. There is an intrinsic relationship between value and price. 

Business turns around the value cycle of Value Creation, Value Communication, Value Delivery, Value Documentation and Value Capture through price.

By getting a fair price for the value created for the customer there is a surplus created that can be reinvested in innovation to keep the value cycle turning.

Ibbaka Valio is a software as a service (SaaS) application to help businesses quantify and illustrate the value that they deliver to their customers and to tie value and price together. Businesses launching innovations can remove the friction of communicating value in a way that can be well understood by customers. Ibbaka Valio provides both a vendor (company) view and a customer (buyer) view. Buyers benefit by understanding what value they are getting and how this is growing in over time.

“Ibbaka’s approach to value-based pricing has transformed how we go to market, providing us a new growth model and the pricing model to support it. They help guide our own innovation by connecting price to value.”

— ROBERT M. HOEHN, CEO & CO-FOUNDER, IDEASCALE

It is not enough to communicate value through sales and marketing. Value communication, delivery and documentation has to continue across the customer journey. Ibbaka Valio connects value and price across the customer journey. The results are:

• Pipeline conversion ratios improve

• Pipeline velocity accelerates

• Discounting is reduced

• Retention improves (churn goes down)

See more on Ibbaka Valio here

Implement Customer Value Management with Value Based Pricing

• Value-based pricing 2.0 goes beyond ringing the sales bell

• What is your target value ratio?

• The Value Pricing Dashboard will be where you integrate applications across the customer journey

• A value model will change your business 

• The customer journey is your guide to pricing communication

• Accelerate business growth with Ibbaka’s Value Pricing Dashboard (This Post)

• Is your sales team blocked on delivering value?

• Pricing and value communication does not end with the sale

• Ibbaka Performance Announces World’s First Value Pricing Dashboard (Press Release)

• Usage-based pricing a complement and not a substitute

More on Usage-based Pricing

• [Webinar] Unlock the Power of Usage-Based Pricing for Enhance NRR with Zenskar & Ibbaka

• Pricing and Planning: Will Usage-Based Pricing continue to Drive Growth?

• Value Paths are the Key to Usage-Based Pricing

• New Skills for Usage-Based Pricing

• Executing on Usage-Based Pricing

• Core Concepts: Usage-Based Pricing

• The Chief Value Officer - An Interview with Stephan Liozu

• Enabling Usage-Based Pricing - Interview with Adam Howatson of LogiSense

• Usage-Based Pricing is a Complement and Not a Substitute

• Pricing Under Uncertainty and the Need for Usage-Based Pricing

• How to Introduce Usage-Based Pricing