THE VALUE & PRICING BLOG
The latest stories, blog articles, and pricing news from the Ibbaka team
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.
How New AI Functionality is Getting Priced: Q&A Follow Up 3
The Mark Stiving and Steven Forth webinar attracted about 500 people and there were a lot of questions asked in the chat. This is the third of a series of posts where we answer these questions.
How New AI Functionality is Getting Priced: Q&A Follow Up 2
The Mark Stiving and Steven Forth webinar attracted about 500 people and there were a lot of questions asked in the chat. This is the second of a series of posts where we answer these questions.
How New AI Functionality is Getting Priced: Q&A Follow Up 1
The Mark Stiving and Steven Forth webinar attracted about 500 people and there were a lot of questions asked in the chat. This is the first of a series of posts where we answer these questions.
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?
The Elusive M: Why Measuring the M in MEDDIC is a Challenge
MEDDIC is a popular approach to lead qualification for B2B SaaS. The M stands for Metrics and itis often where sales struggles. Some even skip over this. The value based approach provides the tools needed to manage the M in MEDDIC.
Maximizing NRR: Introducing Ibbaka’s Revenue Retention Maturity Model
NRR (Net Revenue Retention) is a critical metric for today’s SaaS companies. To help companies improve NRR, Ibbaka is introducing a Revenue Retention Maturity Model that will help companies improve their NRR performance. Learn about this critical new tool in SaaS management.
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.
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?
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.
How to Capture the Right Value Metrics to Accurately Price Your Product
What data do you need to capture in order to design and manage pricing? Your value model holds the answer. Build a value model, identify the variables, and see which of the variables can be set through your solution.
What are the emerging value drivers for generative AI agents and how will they be priced?
Major generative AI vendors are looking for ways to make solutions more compelling, that is to say higher value. What are the emergent strategies? How are they creating value? How will this value get priced?
IDC Names Ibbaka an Innovator in Price Optimization for Usage and Recurring Revenue Models
IDC identified Ibbaka as one of its Innovators in the Price Optimization for Usage and Recurring Revenue Models space. Four companies are called out for their innovations in the space. Ibbaka is changing how companies build, manage and apply value models and use them in pricing, sales, and customer success.
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.
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.
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.
Costs do not justify SaaS price increases - value does
SaaStr recently had a series of interesting posts on pricing. One of them tells the story of a new CRO justifying price increases because of higher costs. Is this ever a good move for a SaaS company?
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.
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.
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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