THE VALUE & PRICING BLOG
The latest stories, blog articles, and pricing news from the Ibbaka team
The Adventures of Super Val: Ibbaka Valio’s Price Defender and Value Vanguard
More than a fictional character, Super Val is a superheroine on a mission, a symbol dedicated to waging war against pricing pitfalls and championing the noble cause of authentic value creation for customers. We delve into the genesis of Super Val, a product of Ibbaka's commitment to revolutionize conventional pricing models, offering solutions to the challenges B2B SaaS businesses encounter in setting the right prices.
Do you have a Customer Value Management Strategy for 2023? - A survey
Pricing and customer value management is an emerging business practice that manages value to customer (V2C) over the lifecycle of the customer engagement. Managing value entails creating, communicating, delivering, documenting and then capturing a fair share of the value created through pricing. Help define this category by participating in this survey.
Price and Customer Value Management for Customer Success
One of the most crucial roles in a subscription business is customer success. Communication of the value offer to the customer and ensuring that the value promised to the client is fulfilled are the responsibilities of customer success. Healthy renewal rates, increased Customer Lifetime Value (LTV), and more success with up-sell and cross-sell opportunities are all ensured by consistent value communication and measurement of value supplied to the customer.
Your Pricing Decisions are Shaped by Value Delivery Patterns
B2B companies now have a consistent method for their sales teams to assist their buyers in making a case for investment. Customer Value Management (CVM) has provided our customers with a solid foundation for increasing revenue faster in the future.
Introducing the Next-Gen approach to Customer Value Management and Price Optimization - Ibbaka Valio
Introducing Ibbaka Valio - a Software-as-a-Service (SaaS) solution for Customer Value Management and Price Optimization. With Ibbaka Valio, companies drive revenue growth by increasing average deal size between 50% and 100%.
Core Concepts: Pricing Metric
A pricing metric is the unit of consumption for which the buyer pays. An example of a pricing metric is dollars per litre for purchasing fuel. Choosing a pricing metric is one of the most important steps in designing value-based pricing.
You have new functionality, you've factored it into your price, are your customers getting the value?
You have developed some exciting new functionality, and want to factor this value into your pricing. How will you do that? Once you have adjusted packaging and pricing, will you check to make sure that customers are using the software in a way that delivers the value?
Ibbaka’s Online Course - Pricing and Customer Value Management
Value-based pricing and customer success are coming together into a new discipline customer value management. Prepare yourself for this transition with Ibbaka’s new course on pricing and customer value management. Sign up for updates on this course and to help us shape the approach.
Why documenting value creation is essential to customer value management
Fashioning a business with value at the center requires a commitment to ongoing value creation for customer stakeholders. In depth understanding of how value is created for the customer is foundational to designing fair and effective value-based pricing. It also creates positive customer experiences across the customer lifecycle. Customer value management is an emerging business practice that manages value to customer (V2C) across the full customer journey.
Value paths guide the customer journey
The power of customer journey mapping is well understood in the service design world. Ibbaka has introduced swimlanes for value and price into the customer journey. It is important to remember that the customer journey is not a given, it is designed. Value mapping is the key tool to design the customer journey experience.
What is the value of value-based pricing?
Value-based pricing emerged from the need to price differentiated products and services in the B2B context. Price optimization models based on simplistic economic theories proved inadequate for complex solutions with multiple stakeholders in the decision making unit. But over the past two decades, applications have expanded, first to sales and marketing, then to product management and marketing and most recently to customer success.
How would you learn about pricing and customer value management?
Value-based pricing and the customer journey are coming together as a the new discipline of customer value management. How would you like to go about activating and embedding this capability in your organization?
What is Service-Led Growth?
Service-led growth (SLG) is a new approach to growing resilient, adaptive and sustainable companies. It is based on a growth flywheel that is kicked off with services, that lead to subscriptions, data is gathered to generate insights, that lead to new services. It is an alternative to product-led growth that is less dependent on external financing.
Why Customer Value Management Requires Value-Based Pricing
Customer value management (CVM) is the most important business discipline. It helps companies across the value cycle of create, communicate, deliver, document and capture value. The result is that companies can track V2C (Value to Customer) and make sure that V2C and LTV (Lifetime Value of a Customer) are aligned. This requires methods from value-based pricing.
Value-based pricing 2.0 goes beyond ringing the sales bell
Value-based pricing is much more than way to set prices, or even as a tool to justify prices in the sales conversation.
Usage-based pricing a complement and not a substitute
Usage-based pricing is one part of value-based pricing but it is not the whole story. Recent research from the Subscribed Institute finds that usage-based pricing has the biggest impact on revenue growth when combined with other pricing metrics. Why is this? We look at why usage-based pricing drives higher growth up to a point, and why an excessive reliance on usage-based pricing can slow growth.
What is your target value ratio?
The value ratio is a critical but frequently overlooked pricing metric. Tracing this metric is critical to your long-term health. Deciding what level to target is one of the most important Where to Play choices you make in pricing.
The Value Pricing Dashboard is where you integrate applications across the customer journey
A lot of data is generated across the customer journey. Innovations platforms, product development applications, marketing automation, sales management (CRM), configure price quote (CPQ), project management, customer service platforms, customer success … Where is the data from all of these applications gathered and put in the context of value? This is the direction we are taking the Value Pricing Dashboard. It will be the integration point for all of the data about value to the customer (V2C).
A Value Model will change your business
Value based pricing requires a formal value model. If you do not have value models that quantify value drivers and connect them together you are just pretending to do value based pricing. Good value models are three dimensional they include economic, emotional and community value drivers. They become real when they are validated in conversations with customers.
The customer journey is your guide to pricing communication
Pricing and value communication is central to good price management. When and how price is introduced into the customer conversation has a big impact on price acceptance. The customer journey map provides a guide to how to plan these conversations. Layering pricing and value into the customer journey is a best practice.
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