THE VALUE & PRICING BLOG
The latest stories, blog articles, and pricing news from the Ibbaka team
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.
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.
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.
Only 15% of Companies are Monetizing their AI Solutions…What’s Your Strategy?
How to monetize investment in generative AI is a critical question for B2B SaaS. Join Kyle Poyar from Growth Unhinged and Openview, Michael Mansard from Zuora and Ibbaka’s Steven Forth for this webinar which will define how companies can move forward and monetize generative AI applications.
Jointly creating value stories with the economic buyer and the sales champion: making MEDDIC even more powerful
The key to value based selling is for buyer and seller to collaborate on the value story. Doing this creates buy in and commitment on both sides. Value stories have an important role to play in supporting the MEDDIC approach to sales.
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).
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.
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.
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.
How to Capture the Right Value Metrics to Accurately Price Your Product
What data do you need to capture in order to design and manage pricing? Your value model holds the answer. Build a value model, identify the variables, and see which of the variables can be set through your solution.
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.
Generative AI, SaaS Innovation, Value and Pricing
Generative AI is attracting a lot of interest as an innovation platform. How will generative AI be used to create value? How will that value be priced?
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.
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.
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.
Core Concepts: Value Model
A value model is a system of equations built from value drivers that estimates how much value a solution will provide to a customer or set of customers (market segment).
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.
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.
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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