THE VALUE & PRICING BLOG

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

Amar Dhaliwal Amar Dhaliwal

What’s a Customer Value Manager and why you need one

Value-based selling has become a cornerstone strategy for many businesses. Executing this strategy effectively without a robust, detailed, validated, and configurable value proposition presents significant challenges. Central to overcoming these challenges is the development and utilization of value models. These models are essential for articulating the unique value a product or service offers and ensuring alignment with customer needs.

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Amar Dhaliwal Amar Dhaliwal

The Crucial Role of Value Models in Value-Based Selling

Value-based selling has become a cornerstone strategy for many businesses. Executing this strategy effectively without a robust, detailed, validated, and configurable value proposition presents significant challenges. Central to overcoming these challenges is the development and utilization of value models. These models are essential for articulating the unique value a product or service offers and ensuring alignment with customer needs.

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Generative AI, AI Pricing, Monetization Liam Hannaford Generative AI, AI Pricing, Monetization Liam Hannaford

Monetizing GenAI Roundtable Webinar: On-Demand Recording

Ibbaka had the pleasure of hosting a roundtable discussion on Monetizing Generative AI, featuring two industry luminaries: Michael Mansard from Zuora and Kyle Poyar from OpenView Partners. Generative AI is going to transform how we build B2B applications, how we configure them, how we move to dynamic configuration, and all of that is going to have a huge impact on both monetization and pricing.

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Steven Forth Steven Forth

The path to generative pricing

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).

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Karen Chiang Karen Chiang

Maximizing Value: The Art of Measurement: PeakSpan & Ibbaka Masterclass Q&A

On June 5th, Ibbaka presented at PeakSpan’s Master Class series. We explored practical steps for building a robust value model, a key tool for value-based pricing. This model, crucial for sales, customer success, and product management, helps estimate economic value. In this blog post, we elaborate on questions from the session.

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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

Look beyond costs when modelling value

Many companies focus on cost reduction as the easiest value driver to define. But there often cases where revenue is a more powerful value driver. Why do so many pricing and marketing teams default to cost value drivers? Revenue value drivers are playing a key role in green or sustainable solutions.

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Steven Forth Steven Forth

What role does pricing play in sustainability

What role should pricing play in sustainability? The place to start is by adding sustainability models to the set of models used to make pricing decisions. Then explore how pricing can nudge people towards the solutions optimize sustainability.

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Steven Forth Steven Forth

What flavor of AI will be used in pricing?

We have entered an AI renaissance. What flavours of AI will have the biggest impact on pricing over the next three years? Here are the top three candidates: predictive analytics, computational game theory, large language models.

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Steven Forth Steven Forth

SaaS pricing is model driven

SaaS pricing is sometimes described as data driven. It is actually model driven, with data being the raw material used to build and adapt the models. It is the interaction of three models that guides pricing. The value model, the cost model and of course the pricing model itself.

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Gregory Ronczewski Gregory Ronczewski

Core Concepts: Economic Value Estimation (EVE)

EVE, or Economic Value Estimation, quantifies the monetary value created by an offering for a particular customer versus their next best alternative. Since value is at the center of pricing strategy, modeling economic value estimation becomes critical in value-based pricing.

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The Art of Value Storytelling - Ed Arnold at PPS Spring 2022 Conference

Ed Arnold will be giving a talk at the Professional Pricing Society’s Spring Conference in Chicago on “The Art of Value Storytelling”. Ed has deep experience developing value models for B2B companies and using these models to inform pricing design. The model is what lies below the water, what most customers want to hear is the value story.

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Rashaqa Rahman Rashaqa Rahman

A software solution for achieving fairness, transparency and consistency in value-based pricing

At Ibbaka, we often come across organizations who struggle to support their sales team in their value-based selling endeavours. Sales teams often find it difficult to defend pricing and communicate the differentiated value of the offer.
With that in mind, we developed The Ibbaka Value Pricing Dashboard which is a software as a service (SaaS) application that connects value to price, and helps organizations quantify and demonstrate the value that they deliver to their customers.

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Steven Forth Steven Forth

Your pricing model needs a value model

Most companies have moved from having a price to having a pricing model. This is a necessary step towards the next generation of pricing excellence. But a pricing model without a value model is adrift. It does not help align the value to customer (V2C) to the price. It is only half the story. Effective pricing strategy requires that we connect a value model to a pricing model.

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