THE VALUE & PRICING BLOG
The latest stories, blog articles, and pricing news from the Ibbaka team
Pricing and NRR: The PeakSpan Ibbaka NRR Survey Results
The PeakSpan - Ibbaka survey on NRR performance was conducted in May and June of 2023 and gathered deep data on Net Revenue Retention (NDR or NRR) performance. Data are analyzed by SaaS vertical, packaging architecture, pricing metrics, organizational design and business focus. Overall, NRR is expected to decline slightly in 2023, but with a clear divergence between the best and the rest.
Pricing and NRR: The Six Factors to Manage
The PeakSpan - Ibbaka survey on NRR performance uses the six NRR factors to get deeper insights than is possible with a more generic approach. You have to understand how much each of the factors is impacting NRR in order to put together an effective strategy.
Pricing and NRR: What are the key questions?
At SaaStr, Ibbaka and PeakSpan will be releasing a major survey on Net Revenue Retention (NRR also known NDR for Net Dollar Retention). What are the key business questions that SaaS leaders should be asking about NRR? What are the critical benchmarks?
SaaS discounting practices and pricing
Discounting is part of most B2B sales, especially at the enterprise level. A recent poll found that less than 5% of companies have ‘no discounting’ policies in place. Who can succeed with no discounting? How can discounting be made successful?
Prioritizing NDR growth choices
With six levers to use to improve NDR where should you focus your effort? Make sure churn is under control then look for where you can have the biggest impact.
NDR Growth Tactics 6: Managing Churn
The sixth NDR lever is churn management. Churn is the great enemy of SaaS businesses and understanding why churn is happening and how to reduce it is a critical part of managing a SaaS business. Churn is the denominator in the equation for customer lifetime value.
NDR Growth Tactics 5: Reduce Package Down-sell
The fifth NDR lever is reducing downsell, where customers move from a more expensive to less expensive package. How can one avoid this, or at least minimize the impact? We explore this challenge here.
NDR Growth Tactics 4: Avoid Package Shrinkage
The fourth NDR lever is avoiding, or minimizing, package shrinkage. One thing that can reduce NDR is reduction in revenue from an existing package. What can we do to eliminate, or at least minimize, in package shrinkage?
NDR Growth Tactics Webinar | May 11, 2023
Join Karen Chiang and Steven Forth for a webinar on tactics to improve Net Dollar Retention, sponsored by Vantec, WUTIF and EFund. May 11, 2023 at 8:00 AM Pacific Time.
NDR Growth Tactics 3: Promote Cross-Sell
The third NDR level is to promote cross sell. NDR applies at the customer level so cross selling will improve NDR. Cross sell can include both value added services and additional product lines. Both can have a big impact on revenue and profitability.
NDR Growth Tactics 2: Drive Up-sell
Companies optimizing NDR have six levers to pull, three positive, three negative. In this post we look at the second of the positive levers: driving upsell across packages.
NDR Growth Tactics 1: Grow in Package
Companies optimizing NDR have six levers to pull, three positive, three negative. In this post we look at the first of the positive levers. Grow in package.
Managing Package Performance to Optimize SaaS NDR
To optimize Net Dollar Retention (NDR) one needs to track package performance closely and optimize monthly. What should be tracked? What actions should be taken?
Will pricing for profit lead to higher SaaS prices?
What will SaaS prices for over the rest of 2023? In Q1 many companies raised prices. The general consensus is that these price increases will continue. Ibbaka thinks SaaS price changes will diverge. Only companies with differentiated value in certain categories will be able to push through price changes.
Trends in SaaS pricing from Q2 2023
What will SaaS prices for over the rest of 2023? In Q1 many companies raised prices. The general consensus is that these price increases will continue. Ibbaka thinks SaaS price changes will diverge. Only companies with differentiated value in certain categories will be able to push through price changes.
Introducing the New Ibbaka Website: Our Commitment to Pricing and Customer Value Management
Ibbaka's website is now easier to navigate and provides a wealth of valuable information on the company's services and expertise. This fresh update demonstrates Ibbaka's commitment to staying at the forefront of innovation and delivering the best possible user experience to its clients.
Costs come back into SaaS pricing
Historically most SaaS companies have focussed on revenue and not been concerned with margins and costs. This was the result of a revenue growth focus and relatively high margins. With the paradigm shift in SaaS, this has changed, and costs are being factored into models and tested at different scales.
When to price using revenue value drivers, when to price using cost value drivers
In a tough stretch for the tech sector AI, and especially content generation AI, has been getting a lot of love. This is only sustainable if these AIs are creating value and that value can be priced. How can we do this?
How pricing models impact growth rate
Pricing model has a big impact on revenue growth. And as the business environment changes the pricing model should change too. The Maxio Institute has recently published its 2023 Growth Market Report. We look at the lessons this has for pricing design and execution at SaaS companies.
Is it time for SaaS companies to factor costs into pricing?
SaaS companies have typically had high gross margins and have seldom considered costs when designing pricing. Is that still sustainable in the changing economic climate? When designing pricing, test to see how value, price and costs change with scale and make sure that your pricing stays aligned as you grow.
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