AI agents are emerging as a standard way to deliver AI functionality, especially in B2B. This has been underlined by Salesforce’s recent Agentforce announcements. Agent pricing is evolving from inputs and number of agents to actions and outcomes. This evolution is framing how we think about pricing generativeAI.

This is the second year that PeakSpan and Ibbaka have collaborated to understand benchmarks and best practices in B2B SaaS. Continuity is important because it allows us to see trends in the data. The report documents the disruption being caused in B2B SaaS by generative AI.

Adobe is investing heavily in generative AI and has begun to signal how it will approach pricing. It is taking an incremental approach. Price remain anchored in a per seat price, but plans are becoming more flexible, and more expensive!

This blog post discusses the importance of value in customer engagement and introduces the Value Cycle. It explains how value creation, communication, delivery, documentation, and capture are essential for building strong customer relationships. The post also presents a simple scorecard for evaluating a company's performance in each area of the Value Cycle.

NRR dynamics differ depending on market stage. In markets that are being disrupted and where new use cases are emerging you can see high Net Revenue Retention and high churn occur together. This post summarizes a key insight from the forthcoming Peakspan Ibbaka NRR Survey for 2024.

Conventional approaches to pricing are not fit for purpose when it comes to pricing generative AI applications for B2B. A new process is needed. Ibbaka is proposing generative pricing, a mashup (or concept blend) of dynamic pricing and value based pricing.

Discounting is a fact of life for most B2B companies. As pricing models become more complex and come to include usage or consumption components, what should get discounted? We use scenario planning to think through this question.

Salesforce has announced that it will use consumption pricing for its AI agents going forward. Why is Salesforce taking this approach? What are the implications for other Vertical AI companies? Results of our LinkedIn poll.

Value-based selling has become a cornerstone strategy for many businesses. Executing this strategy effectively without a robust, detailed, validated, and configurable value proposition presents significant challenges. Central to overcoming these challenges is the development and utilization of value models. These models are essential for articulating the unique value a product or service offers and ensuring alignment with customer needs.

Ibbaka had the pleasure of hosting a roundtable discussion on Monetizing Generative AI, featuring two industry luminaries: Michael Mansard from Zuora and Kyle Poyar from OpenView Partners. Generative AI is going to transform how we build B2B applications, how we configure them, how we move to dynamic configuration, and all of that is going to have a huge impact on both monetization and pricing.

OpenAI's o1 models are getting a lot of attention. They are a phase change for how we work with generativeAI. OpenAI has also shared how it will approach pricing of this first version of reasoning models. Reasoning tokens. What are the implications for generative AI pricing generally?

OpenAI has released o1, it next generation approach to generative AI reasoning and problem solving. If you were OpenAI, how would you price this innovation? We summarize the results of a flash poll, give some analysis and provide our own recommendation.

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.

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?

Here are some early insights from the survey we are using to inform our Sept. 19 roundtable on generative AI monetization. Michael Mansard, Kyle Poyar and Steven Forth will go deep into the trends in generative AI and how it us being monetized.

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?

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.

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.

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.

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.