THE VALUE & PRICING BLOG
The latest stories, blog articles, and pricing news from the Ibbaka team
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.
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.
Pricing Diagnostics and Rapid Response (PeakSpan Master Class)
Take control of your pricing with our upcoming Master Class with PeakSpan Capital. Our highly anticipated event is on “Pricing Diagnostics and Rapid Response” and will equip you with a practical action plan that empowers you to swiftly diagnose and take control of your pricing strategy.
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.
Pricing Strategy for 2023 - 3: Changing Market Dynamics
Market dynamics can change in a recession and different customers will respond in different ways. Understand how market dynamics could change and then resegment your customers to craft pricing and price communication strategies. You will also want to model scenarios for different competitive responses.
Pricing Strategy for 2023 - 2: The Pricing Landscape in 2023
The 2nd excerpt from the Ibbaka eBook Pricing Strategy for 2023. The economic landscape has changed in important ways and these changes will shape pricing strategy in 2023. Inflation, higher interest rates, the threat of a recession, supply chain challenges, the lack of talent and competitor actions all need to be taken into account.
Pricing Strategy for 2023 - 1. Questions Boards Need to Ask CEOs about Pricing
2023 will be a pivotal year for pricing strategy. The trends of the last few years will come together leading to fundamental changes in the operating environment. Pricing will need to change as well. The 1st in a series of posts to help investors, boards and C-level leadership prepare.
Optimizing price - what metrics and goals are you tracking?
As the economy shifts, the key goals for pricing are changing. Net Dollar Retention (NDR) has come to the fore for many companies. Growth models are shifting as buyer behaviors change.
How will a recession change market dynamics and impact your pricing strategy
Market dynamics can change in a recession and a change in market dynamics can motivate a change in pricing strategy. Market dynamics differ by segment and customers can change segments with a recession. Prepare for 2023. Think through how a change in market dynamics could require changes to your pricing strategy.
Pricing in consolidating markets
Some are predicting a recession in 2023. With recessions, one often sees market consolidation. The number of potential customers, or the number of pricing units, or both, can decline. This has implications for both pricing and growth models. Leaders need to be prepared to respond.
Value Driver Priority and Pricing Under Growth and Interest Rate Scenarios
As you plan pricing actions for 2023, take into account more than one scenario. Two of the critical uncertainties are around interest rates and economic growth. These combine to call different value drivers to the top of a buyer’s mind. The relative importance of different value drivers for target segments has a big impact on pricing strategy and execution.
When should pricing get involved in innovation?
Innovation is a core capability for companies as they adapt to the changing economy. Pricing experts could make a big contribution to directing innovation towards creating differentiated value but they seldom do so. To really engage with innovation leaders, pricing experts need to understand the various innovation frameworks and add value to them.
Growth Models to Drive your Company's Performance to Best Capture Revenue
Growth demands that both trust and value are well realized by your customer. Customers are expecting value to be delivered to them and the Service-Led Growth model can drive higher, sustainable, and predictable growth (revenues). This is especially true when customer centricity relies on the synergy between expertise, platforms, and insight to drive the business relationship that in turn drives monetization. The SLG model can be a more powerful way to increase and accelerate value delivered as customer relationships mature over time.
Inflation does not give you a carte blanche to raise prices
Some companies think that price increases will be easy in 2023, given the expectations created by inflation. They are wrong. Inflation is different in different industries and in some cases inflation makes it harder to raise prices as people become more cost conscious. Ibbaka can show you if and how you should raise prices.
Reflections on pricing practice
While on medical leave, I had a chance to take a step back and think about emerging issues and best practices in pricing. I put down some of these thoughts in a series of posts on LinkedIn: Pricing Generic AI, Pricing Microservices, Organizing Value Drivers, Integrating Pricing Models, The 4Cs of Pricing. I also shared some thoughts on design from my stay in hospital.
SaaS Companies plan to raise prices in 2023, do they know how to do this?
According to SaaStr, more than 50% of SaaS companies plan to raise prices in 2023. A price change is a good chance to realign price and value and to adjust packaging. Do SaaS companies know how to do this? Here are 5 Key Steps.
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.
Will the Same Pricing Model Work for Sales-Led Growth and Product-Led Growth?
Product-Led Growth (PLG) and Sales Led-Growth (SLG) are the 2 dominant growth models. In fact, they are often complementary. Can the same pricing model be used to support both growth models? Well, 'it depends.' We look at when and how to leverage a pricing model across PLG and SLG.
Use Value to Stop Losing Deals
Fixing poor sales or pricing performance doesn’t have to be hard! Many of these challenges ultimately are centered around understanding the customers biggest pains, and the real value of solving those problems. In this article, we help you take a methodical look at why sales teams lose deals and what to do about it.
Questions boards should ask CEOs about pricing
Inflation and a possible recession. Many companies are circling the wagons and shifting to survival mode. This means different things for different companies, but in all cases, pricing should be at the center of the board conversation. Here are 5 Questions that boards should be asking CEOs about pricing.
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