THE VALUE & PRICING BLOG
The latest stories, blog articles, and pricing news from the Ibbaka team
Introducing the Next-Gen approach to Customer Value Management and Price Optimization - Ibbaka Valio
Introducing Ibbaka Valio - a Software-as-a-Service (SaaS) solution for Customer Value Management and Price Optimization. With Ibbaka Valio, companies drive revenue growth by increasing average deal size between 50% and 100%.
Pricing for NDR (Net Dollar Retention)
Over the past 6 months, we have seen many companies shift their focus from ARR (Annual Recurring Revenue) to growing NDR (Net Dollar Retention - also known as Net Revenue Retention). How do you use the value and pricing levers to grow NDR?
Executing on Usage-Based Pricing
Usage-Based Pricing is a hot topic. It fits well with Product-Led Growth (PLG) and is a critical step on the way to Outcome-Based Pricing. Ibbaka and OpenView Venture Partners have been documenting what you need to do before, during, and after you introduce Usage-Based Pricing.
The 4Cs of Pricing and How they Interact
Gerry Smith is one of the people who has shaped how we think about pricing. This post covers the 4Cs of pricing: Customer Value, Customer Willingness to Pay, Competition and Costs. The 4Cs interact with each other and we tease out some of the ways this happens.
5 Characteristics of a Superior Pricing Model
B2B SaaS companies are waking up to the importance of pricing. There is a lot of work going into building pricing excellence. But what does pricing excellence mean? And how do you build it? The foundation of pricing excellence is being able to design and execute on a superior pricing model. In this post, we look at the 5 most important characteristics.
Pricing after Merger and Acquisition Part 3: The M&A Pricing Checklist
Pricing after Merger and Acquisition Part 3: The M&A Pricing Checklist. In the 3rd and Final Post of our Pricing after Merger and Acquisition series, we provide a simple checklist to help you make sure you are covering off the key pieces. A checklist helps with alignment, allocation of tasks and makes sure that nothing falls through the cracks.
Pricing after Merger and Acquisition Part 2: Finding Pricing Alignment After a Merger
Pricing after Merger and Acquisition Part 2: Finding Alignment. In the 2nd post of our 3-part series of Pricing after M&A, we look at how to find alignment between the 2 organizations when it comes to pricing and market segment.
Pricing after Merger and Acquisition Part 1: Why Pricing is Critical to M&A Success
Pricing after Merger and Acquisition Part 1: Why Pricing is Critical to M&A Success. The 1st in a 3-part series on how to make sure that pricing contributes to the success of a merger. There are common challenges in post merger pricing. Roger Martin’s strategic choice cascade can be adapted to guide us through the critical choices are to be made.
Design your Free Offer to Generate Product Qualified Leads (PQLs)
One of the hot topics in Product-Led Growth (PLG) is the idea of Product Qualified Leads (PQLs). We have long had Marketing Qualified Leads (MQLs) and Sales Qualified Leads (SQLs). We now have Product Qualifies Leads (PQLs). How do you design your free offer to generate PQLs?
Pricing for Net Dollar Retention (NDR)
As economic conditions change, Net Dollar Retention (NDR) has become a critical issue for many B2B SaaS companies. What role does pricing play in ensuring NDR? In this post, we look at why NDR has become an important concern and how to improve Net Dollar Retention.
5 Growth Models and How to Price for Them
There is more than one way to grow your company. The 5 most common growth models today are Product-Led Growth, Sales-Led Growth, Service-Led Growth, Community-Led Growth and Relationship-Led Growth. Most companies will have a lead strategy and a supporting strategy. Each model has implications for pricing strategy.
When and how to change your pricing metric
The pricing metric is the unit of consumption for which a buyer pays for your offer. It should track the value metric. The unit of consumption by which a user gets value. Changing the pricing metric is one of the most important things you can do to transform your business. When should you change your pricing metric? How do you go about doing this?
How to price leadership training
How would you price leadership training? Most people price per person trained. Is that the right approach in all cases? Here we explore some different ways to design pricing for leadership training. In pricing, the first question is how is value delivered, the second question is what to price.
What to price? What to optimize? How to optimize? Three key pricing questions
Three of the most important pricing questions are ‘What to price?’ ‘What to optimize?’ ‘How to optimize?’ Pricing experts have gravitated to how to optimize, but it is important to answer the other two questions first. Begin with what to price.
Comparing pricing strategies at Thinkific and Kajabi
One can learn a lot by comparing pricing pages. Here we look at Thinkific and Kajabi to see what we can infer from the pricing curves in their tiered pricing architectures (sometimes referred to as GBB or Good Better Best pricing).
How to execute on your price change
Deciding to change your pricing can be the easy part. Once you have decided on the change you need a way to communicate the change, lead your customers over into the new model, manage dissent, and make sure everyone is getting the value designed into the model.
You have new functionality, you've factored it into your price, are your customers getting the value?
You have developed some exciting new functionality, and want to factor this value into your pricing. How will you do that? Once you have adjusted packaging and pricing, will you check to make sure that customers are using the software in a way that delivers the value?
Ibbaka and OpenView on Pricing Transitions in 2022
OpenView Venture Partners lives up to the promise of being a value-added investor and is a thought leader in areas like product-led growth and usage-based pricing. Each year, Ibbaka and OpenView publish our thoughts on pricing transformations for the coming year.
Pricing as a sector transitions: the case of Digital Asset Management (DAM)
Pricing strategy and tactics change as software categories go through major transitions. These transitions can play out across the technology adoption cycle, be part of major changes (like the shift to SaaS) or part of the normal commoditization that all successful categories go through. The Digital Asset Management (DAM) category is currently going through the commoditization phase. This is what will happen.
What are people predicting for pricing in 2021?
It is a new year and people are coming out with their forecasts. Here we share some of the forecasts that people are making together with our own thoughts on what we will see.
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