THE VALUE & PRICING BLOG

The latest stories, blog articles, and pricing news from the Ibbaka team

Steven Forth Steven Forth

Peakspan Ibbaka NRR Survey 2024

Peakspan and Ibbaka collaborate each year on a survey to understand how B2B SaaS companies approach Net Revenuer Retention (NRR). The survey results are used to benchmark NRR performance by SaaS vertical and to help SaaS operators improve NRR performance.

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Steven Forth Steven Forth

AI applications edge toward outcome based pricing

There has long been speculation that AI will enable a shift to outcome based pricing, overcoming objections based on attribution, predictability and accountability. Intercom’s pricing of its Fin AI Agent is evidence that this is beginning to happen. Will AI lead to outcome based pricing?

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Steven Forth Steven Forth

Four types of input into a value model

Value models integrate different types of information: about the customer, about the improvement claims, about the industry and economy along with assumptions that are part of the model. Bringing these different types of information together drives insights that are not available when the data is managed in silos.

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Steven Forth Steven Forth

Why are AI applications priced conventionally?

Last fall Ibbaka research found that the most common pricing metric for AI applications was per user. This was confirmed in a recent survey by Kyle Poyar and Palle Broe for Growth Unhinged. What are the reasons for this?

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Steven Forth Steven Forth

Look beyond costs when modelling value

Many companies focus on cost reduction as the easiest value driver to define. But there often cases where revenue is a more powerful value driver. Why do so many pricing and marketing teams default to cost value drivers? Revenue value drivers are playing a key role in green or sustainable solutions.

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Steven Forth Steven Forth

Pricing AI: What role could AI play in pricing?

AI is changing what we price. That is the theme of our April 26 talk at the Professional Pricing Society conference in Chicago. But it is also changing how we price. Let’s open up our thinking and explore different ways we could apply AI to pricing.

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Steven Forth Steven Forth

TCO or ROI or Value - Which Can Justify SaaS?

Total Cost of Ownership (TCO), Return on Investment (ROI) and Value are ll used in price setting an justification. How are these related? Which approach works best? A value model is at the heart of a successful value program and critical to managing churn.

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Karen Chiang Karen Chiang

Protect Revenue Retention - Look at Churn

Churn is the first of the six Net Revenue Retention Levers to look at. Begin by understanding the natural rate of churn for your solution. If you are above the natural rate of return, then churn is where you need to focus. Ibbaka can help you use value and pricing to reduce churn.

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Steven Forth Steven Forth

Differential Diagnosis of Pricing Symptoms for Churn

Many companies start worrying about pricing when they encounter a symptom that they associate with a pricing problem. A classic example is churn. But pricing is only one of the possible causes of churn. Trying to fix churn by changing pricing will only work in certain circumstances.

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Retention Harp Dhaliwal Retention Harp Dhaliwal

The OG of Retention Metrics: Why GRR Still Matters

Gross Retention Rate (GRR) remains vital in the realm of SaaS metrics. Not only does it offers a clear insight into customer value and satisfaction, alongside Net Revenue Retention (NRR), but it serves as a crucial pillar for achieving long-term, sustainable growth. Track this metric religiously, integrate it as a KPI, and allocate resources wisely to enhance your gross retention trajectory over time.

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Steven Forth Steven Forth

What is driving your Net Revenue Retention (NRR)? Poll Results

NRR is the critical metric for SaaS companies and measures the organic growth from within the customer base. There are different ways to drive NRR: reduce churn, grow revenue with current customers and discourage revenue shrinkage. As we near the end of Q1 2024, what are SaaS companies prioritizing?

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