THE VALUE & PRICING BLOG
The latest stories, blog articles, and pricing news from the Ibbaka team
AI pricing: Your next proposal will be evaluated by an AI
Companies have begun to use generative AI applications to evaluate proposals. What does this mean for proposal generation and pricing? How can a value story help you score well when an AI is making recommendations?
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.
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.
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.
Generative AI Monetization: An Interview with Michael Mansard
Generative AI application monetization is still in early days. Michael Mansard from Zuora has done some hard thinking about this. He shares his insights in this Ibbaka interview.
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.
What does generative AI think about generative pricing?
Will generative AI apps require generative pricing? And what might generative pricing be? We asked a generative AI to get a recursive perspective on this.
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.
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.
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.
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?
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