THE VALUE & PRICING BLOG

The latest stories, blog articles, and pricing news from the Ibbaka team

Steven Forth Steven Forth

Four types of input into a value model

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.

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Steven Forth Steven Forth

Why are AI applications priced conventionally?

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?

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Steven Forth Steven Forth

How pricing models impact growth rate

Pricing model has a big impact on revenue growth. And as the business environment changes the pricing model should change too. The Maxio Institute has recently published its 2023 Growth Market Report. We look at the lessons this has for pricing design and execution at SaaS companies.

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Steven Forth Steven Forth

Pricing for NDR (Net Dollar Retention)

Over the past 6 months, we have seen many companies shift their focus from ARR (Annual Recurring Revenue) to growing NDR (Net Dollar Retention - also known as Net Revenue Retention). How do you use the value and pricing levers to grow NDR?

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Steven Forth Steven Forth

Executing on Usage-Based Pricing

Usage-Based Pricing is a hot topic. It fits well with Product-Led Growth (PLG) and is a critical step on the way to Outcome-Based Pricing. Ibbaka and OpenView Venture Partners have been documenting what you need to do before, during, and after you introduce Usage-Based Pricing.

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Gregory Ronczewski Gregory Ronczewski

Core Concepts: Usage-Based Pricing

Usage-Based Pricing uses a measure of usage as a pricing metric. It is often combined with other pricing metrics to create a hybrid pricing model. Research has found that companies who include a usage-based metric grow faster. A well designed usage-based pricing metric connects price to value.

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Steven Forth Steven Forth

New Skills for Usage-Based Pricing

Usage-based pricing has emerged as a critical component in pricing design. Important in its own right, it is also a step on the path to the Holy Grail of pricing - outcomes based pricing. Success requires new skills around prediction, value paths and customer success.

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Steven Forth Steven Forth

Pricing and Value Communication Does Not End at the Sale

Too many companies negotiate a price during the sales process and then forget about it. This is a recipe for failure. Pricing and value are closely connected. The pricing-value conversation continues across the customer journey. Keeping this conversation current is how to drive renewal, cross sales and upselling.

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Steven Forth Steven Forth

Service-Led Growth is habit forming

Service-led growth is driven by a positive feedback cycle. This cycle has a lot in common with the cycle that leads us to form good (and bad) habits. A concept blend of service-led growth and the habit cycle gives new insights into how to make service-led growth work.

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Steven Forth Steven Forth

Ibbaka on Arthur Ventures and OpenView Partners

Ibbaka is a highly collaborative company. We work to build a community of people and organizations committed to creating and delivering value, whether that be economic, emotional or pricing. Some of our work is on pricing. Some is more focussed on innovation. In all cases we are looking to help people develop their skills. One way we do this is through our collaborations with the venture capital firms Arthur Ventures and OpenView Venture Partners.

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Steven Forth Steven Forth

Value Paths are the Key to Usage-Based Pricing

Usage-based pricing is a best practice and a key step towards outcomes-based pricing. This sounds good, but what usage? Should any click be used for the usage metric that becomes part of the pricing model? Value paths are are a sequence of actions that lead to value. They are different from but related to value streams. Identifying value paths and then making them part of your pricing model is the key to usage-based pricing.

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Steven Forth Steven Forth

How to Test if your Service-Led Growth Flywheel is Spinning

Just because you have professional services and software subscriptions and data does NOT mean you are driving a service led growth model. You have service led growth when services predict subscriptions and subscriptions predict revenue. Prediction is key. To really get the crank turning, data is also monetized and the platform is constantly reducing the cost of service delivery while increasing its value.

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Steven Forth Steven Forth

How to Introduce Usage-Based Pricing

Usage-based pricing is one of the themes in 2021. Both product led growth and service led growth strategies work best when there is an element of usage based pricing. But where to start? We walk you through the best way to layer in usage-based pricing.

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