AI SDRs have been getting a lot of attention in rev ops and demand generation circles. We reviewed three of the top vendors in ‘Understanding how generative AI SDRs are revolutionizing sales development.’ In this post we use a generative AI to compare their pricing pages and unique selling propositions.

Generative pricing emerged as a response to the pricing requirements of second generation generative AI applications, but the five steps at the heart of the approach are generally applicable. They provide a foundation for a new approach to price optimization, one based on the value being delivered.

Sales led growth continues to be the dominant growht mption in B2B SaaS with more than 70% of SaaS companies relying on this approach. How will generative AI impact sales led growth? One place is early in the sales funnel. Sales Development Representatives (SDRs) are responsible for qualifying and prepping opportunities. Can this be done by AI?

Value, Usage, Price Cost. All of these interact to determine billing. The four together form the value diamond. Join Zenskar and Ibbaka on Wed, August 14th for a deep dive into how the value diamond can solve your NRR challenges.

The key to value based selling is for buyer and seller to collaborate on the value story. Doing this creates buy in and commitment on both sides. Value stories have an important role to play in supporting the MEDDIC approach to sales.

Value models are the way to connect the different business processes that deliver the customer experience. What is a value model? How are they used? In this pot we connect the dots.

Most SaaS companies know their Net Revenue Retention (NRR) number. They even know the trend. But NRR is composed of several different factors. It is not enough to know top level NRR. One needs to understand each of the six NRR factors, how they are trending and how they interact.

Generative pricing will come to dominate B2B SaaS pricing over the next decade, but most companies will begin by taking small steps to get there. The five steps are to (i) build a value model, (ii) use feature flags, (iii) map features to value, (iv) design a pricing model based on the feature-value mapping, (v) have pricing define configuration (or vice versa).

Generative AI is increasingly used to evaluate proposals. Before sending out a proposal an emerging best practice is to evaluate it and get recommendations for improvements using a generative AI application. In this post we show you how to prepare a rubric that will help in this process.

How should generative AI applications be priced? We asked our community in a flash poll, here are the results and our point of view on the emerging best practices for monetization and pricing of generative AI applications.

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?

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 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.

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 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.

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.

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.

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.

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.

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.