THE VALUE & PRICING BLOG

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

Steven Forth Steven Forth

Generative Pricing

Applications built on generative AI platforms have emerging properties and will need a new approach to pricing. Software applications are becoming composable, conversational and adaptive. Pricing needs to respond. A new approach to pricing is needed. Let’s call it generative pricing.

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Steven Forth Steven Forth

Value stories are the key to value based pricing success

Value based pricing is the key to sustained growth in B2B SaaS. But having a value model and a value based price is just the beginning. You have to be able to communicate that value in a value story. The form of the value story evolves over the customer journey.

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Steven Forth Steven Forth

AI pricing metrics showing up in multiple SaaS verticals

Certain pricing metrics are associated with AI applications. In this year’s PeakSpan Ibbaka Survey of NRR we are seeing pricing metrics associated with AI showing up in multiple verticals, a significant change from last ear.

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Steven Forth Steven Forth

Some companies are still driving outstanding NRR performance

There has been a lot of doom and gloom about trends in Net Revenue Retention. But there are still some companies driving extraordinary performance. We look at one example from the open PeakSpan Ibbaka Survey on Net Revenue Retention in 2024.

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Karen Chiang Karen Chiang

Maximizing Value: The Art of Measurement: PeakSpan & Ibbaka Masterclass Q&A

On June 5th, Ibbaka presented at PeakSpan’s Master Class series. We explored practical steps for building a robust value model, a key tool for value-based pricing. This model, crucial for sales, customer success, and product management, helps estimate economic value. In this blog post, we elaborate on questions from the session.

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Steven Forth Steven Forth

Which NRR factor are you prioritizing?

Net Revenue Retention depends on more than churn/retention. There are six factors that determine NRR. Which are you prioritizing? Take the PeakSpan Ibbaka 2024 NRR Survey and we will share out insights.

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Steven Forth Steven Forth

Will generative AI require new approaches to pricing?

A recent poll found that 40% of pricing, design and product management leaders believe that generative AI will require new approaches to pricing. What might these new approaches look like? We explore this using concept blending with the help of generative AI.

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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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