THE VALUE & PRICING BLOG

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

Steven Forth Steven Forth

Pricing patterns for generative AI

Most companies monetizing generative AI are using hybrid pricing models where they combine more than one pricing metric. You can see that in the survey we are running to prepare for the Sept. 19 roundtable on monetizing generative AI. What metrics tend to be used together? We ran the data through a Leiden algorithm to find the clusters.

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Steven Forth Steven Forth

NRR Factor Analysis and PER (Potential Expansion Revenue)

What is the revenue potential of your current customer base? This is your PER or Potential Expansion Revenue. This is an important number for SaaS growth leaders to understand. What percent of your PER are you realizing? How do each of the NRR factors impact your PER?

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Steven Forth Steven Forth

Why Ibbaka is changing Valio pricing

This September Ibbaka changed its pricing. We decided to be more generous in the number of value stories and pricing models included in each package. Why did we do this? How did we make the decision? How does this impact the price?

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Steven Forth Steven Forth

A Checklist for Introducing New Pricing

Checklists are a powerful planning and risk management tool. They are used when there is a complex process with many dependencies. Pricing transformation is such a process. Ibbaka has a checklist for introducing new packaging and pricing.

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Steven Forth Steven Forth

Ask your questions on generative AI monetization

Join our Sept. 19 roundtable on generative AI monetization. Kyle Poyar from OpenView and Growth Unhinged, Michael Mansard from Zuora and Steven Forth will have an open conversation on how second generation applications are getting priced and monetized. Take this three minute survey and prime your questions for this important session.

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Steven Forth Steven Forth

Best practices in introducing new pricing

Introducing a new pricing model is a strategic transition. How you price says a lot about your company. How you introduce new pricing communicates your value and your values. A good plan, embedded in an OODA loop, is the key to success.

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Steven Forth Steven Forth

NRR Performance Analysis: 4 Examples

NRR (Net Revenue Retention) performance varies widely. Here we share four examples from the PeakSpan Ibbaka NRR Survey for 2024. Understanding the performance of other companies can help you devise the strategy to improve your own.

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Steven Forth Steven Forth

What makes a good value model? Tom Nagle’s view

Value models are the key to value based pricing and value based sales. What are the characteristics of a good value model? Ibbaka is exploring this with a group of experts. Here we go to the source and elaborate on Tom Nagel’s approach to value modeling and what makes for a good value model.

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Edward Wong Edward Wong

Comparing the Pricing Pages of AiSDR, Reply.io, and Smartlead.ai

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.

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Steven Forth Steven Forth

Steps on the path to generative pricing

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.

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Edward Wong Edward Wong

Understanding how generative AI SDRs are revolutionizing sales development

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?

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Steven Forth Steven Forth

The uses of value models

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.

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Steven Forth Steven Forth

A Quick Guide to Net Revenue Retention Factor Analysis

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.

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Steven Forth Steven Forth

The Path to Generative Pricing

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).

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Steven Forth Steven Forth

Pricing approaches for generative AI applications

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.

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