Inflation is raising its head. This will lead to pressure on pricing leaders to increase prices. Before making a knee jerk response, find out how inflation impacts your customers and the differentiated value you provide them. Ask what impact inflation will have on demand for your solutions.

Usage-based pricing is one part of value-based pricing but it is not the whole story. Recent research from the Subscribed Institute finds that usage-based pricing has the biggest impact on revenue growth when combined with other pricing metrics. Why is this? We look at why usage-based pricing drives higher growth up to a point, and why an excessive reliance on usage-based pricing can slow growth.

Value based pricing is widely misunderstood. Some people think it can be reduced to willingness to pay (WTP). It cannot. In a recent LinkedIn post Robert Ribciuc asked nine rhetorical questions about value based pricing. We answer them here.

In most companies value and pricing are disconnected. Even worse, value promises and value delivery are not well documented. The result is lower sales, more discounting and churn. The Ibbaka Value Pricing Dashboard connects pricing to value across the customer journey. It gathers the data you need to effectively evolve pricing.

When sales comes to you asking for discounts or demanding price cuts do not blame them. Ask yourself, have you helped them communicate value and then document the value delivered? Value-based pricing begins with value, not pricing. If you want your sales team to execute on a value based strategy you need to support them.

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.

There is a lot of noise in the pricing world about how pricing will evolve over the coming years. Some say dynamic pricing will dominate. Others remain focussed on value-based pricing. There is more and more discussion of outcomes or results based pricing. Other people have already begun to speculate about machine-to-machine pricing. People in the Professional Pricing Society’s LinkedIn Group and in the Coalition for the Advancement of Pricing have shared their thoughts. We summarize these here and provide some additional structure.

One of the key barriers to adopting value-based approaches, including value-based pricing is a lack of customer understanding. The best way to organize your research into customer value is a customer journey map. This tool is underutilized in pricing discovery. Here we show how to build a customer journey map that will inform your pricing.

Many companies are adding predictive analytics capabilities to their offers. We all want to know more about the future, there is more and more data available and deep learning style AIs have been described as prediction machines. How should this new functionality be priced? There is no one answer, but by following the basic value based pricing process one can get to an answer.

Understanding your customers is critical for value-based pricing. Adam Lorant and Doug Lyons have a long and hugely successful track record in starting and coaching high growth companies. They are now taking those insights and putting them into the customer canvas. In this interview we learn about the customer canvas and explore its connections to pricing.