THE VALUE & PRICING BLOG
The latest stories, blog articles, and pricing news from the Ibbaka team
Would you like to calculate your emotions?
If only 10% of companies measure what matters, what is it? What hides behind 90% of the quantitative value? Is it possible that the elusive, sometimes impossible and yet the most potent drivers of every activity are simply our emotions?
“There is a crack in everything. That's how the light gets in.” ~ Leonard Cohen
Emotional Value Drivers play a pivotal role in human behaviour, and yet, they escape the aspiration to tame them by assigning a numeric value and make them less elusive. Is it possible, I wonder, to better connect emption and price. This exploration that starts in a drawing class.
Prepare for landing
It is August, and even our secluded beach is full of tourists, so I propose a slightly lighter take on some of the business initiatives we are working on this summer.
How you do anything is how you do everything
Change is everything, and everything is changing. Nothing stands still. Observing the change and acting upon the insights is critical, especially in the dynamic world of SaaS companies. That is why we are adding a new analytics module to the Ibbaka Valio platform.
Selective Bias
Value is the driving force behind many actions—personal or business. As a result, we all carry a priority list organized around things important to us - the value that emerges from activities, products, services or engagements. Ibbaka Valio connects many elements into a compelling value story.
From Nowhere to Now Here
Tiny changes often result in unexpected results. But understanding those insignificant adjustments lead to appreciated outcomes, especially in pricing.
Levelling up
Change is necessary for the design process to continue. Without change, we are often stuck in the same pattern. Websites used to last for a couple of years, but now, the need to remain relevant takes on another meaning. Regardless of the process, it is refreshing for the team, but even more, for the audience.
Core Concepts: The Value Cycle
The value cycle defines how organizations create, communicate, deliver, document and capture value. It is generally used by companies to align different business functions around how they create value for customers. The value cycle turns around a deep understanding of how value is created for customers.
Core Concepts: Customer Lifetime Value (LTV or CLV)
Lifetime Value of a Customer (LTV / CLV) is the total worth of a customer's business over the whole period of their relationship. It costs less to keep existing customers than to acquire new ones, so increasing the value of existing customers is a great way to propel growth.
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: 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.
Core Concepts: Value Path
The Value Path is a powerful metaphor that brings together processes, performance, business outputs, and organizational goals to focus on value creation. The value path is a series of steps that results in value for the customer or end-user.
Core Concepts: Willingness to Pay
Willingness to pay (WTP) is a popular term in pricing, but it should not be used when designing pricing. It is an outcome of good value-based pricing work and not something that can be optimized directly. Pricing experts who claim to optimize for WTP are leading their customers astray.
Everyone needs a little wabi-sabi
Embracing the Japanese aesthetic of wabi-sabi, this blog explores beauty in imperfection and impermanence. It challenges the pursuit of perfection in a world that often overlooks the unexpected and unaligned. Through reflections on art, innovation, and competency models, it advocates for valuing the unique and remarkable over the flawless and standardized.
"The distinction between past, present, and future is only a stubbornly persistent illusion." ~ Albert Einstein
Delve into the intricacies of the unconscious mind with insights from Dr. John Bargh's book, "Before You Know It." Explore the concept of the visible future and its impact on decision-making, both for individuals and businesses. Discover the importance of skill management in shaping the future trajectory of companies, and learn how TeamFit's inference engine simplifies the process by capturing skill requirements and aiding in strategic planning.
How, Where, When and Why - looking inside Service Design
The world of Service Design—an interdisciplinary skill that blends elements from various fields such as user experience, systems design, marketing, and psychology to optimize new services. Explore its key principles and associated skills, and learn how Ibbaka enhances collaboration in this innovative domain.
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