Chat GPT from Open AI has been getting a lot of attention recently. It is a window into the future of how AI and how we will work with AIs. Ibbaka asked Chat GPT about pricing and product-led growth. See what an AI has to say.

Many companies are under pressure to take pricing actions in 2023. Investors want higher prices. Customers want relief from a recession. Inflation is causing some people to raise prices while customers are becoming more cost conscious. Before taking any pricing action, take a look at how you are performing on discounting.

Many B2B SaaS companies are planning aggressive price increases in 2023. They are doing this because they see inflation as a good to slip in a price increase while their customers will accept one. This is naive. B2B SaaS companies need to be focussed on how they are creating value and how this is changing for their customers. There are opportunities to raise prices, but they need to be targeted and not broad brush.

Are you planning a price increase for 2023? Before you execute on a price increase you need to segment your customers. The segmentation is based on Value to Customer (V2C) and a measure of the value of the customer to the company like ARR or LTV (life time value of the customer). You want to move customers into the segment where they are getting a lot of value and providing a lot of value.

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.

Net Revenue Retention (NRR) or Net Dollar Retention (NDR) will be a key way that B2B SaaS companies demonstrate their value to investors in 2023. Pricing will play a critical role in how companies improve NRR and NDR. As you price to improve NDR in 2023, plan for how this will position you in 2024.

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.

In the summer of 2022, long years of work on AI content generation exploded into the mainstream. In 2023, billions of images will likely be produced by systems like Dall-E and Stable Diffusion. How will AI content generation deliver value? Is this category creation or disruptive innovation? How will these systems and the images they generate be priced? The 3rd part in Ibbaka’s series on Pricing and Innovation.

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.

Pricing and value management can play a key role in giving direction to innovation. Value drivers are one way to do this. Does the innovation augment an existing value driver or create a new one? Does it do this for existing users or for new users? Understanding value is the key to successful value creation and capture.

One of the background conversations at the Professional Pricing Society’s Fall Conference was ‘what do we mean when we say '“pricing optimization”?’ There are several ways to interpret this common term. What do pricing professionals mean?

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.

The Professional Pricing Society had its Fall Conference in San Francisco October 20 and 21. Here are some of the key themes and some memorable quotes.

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.

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.

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.

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.

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.

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.

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.