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.

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?

IDC identified Ibbaka as one of its Innovators in the Price Optimization for Usage and Recurring Revenue Models space. Four companies are called out for their innovations in the space. Ibbaka is changing how companies build, manage and apply value models and use them in pricing, sales, and customer success.

AI is changing what we price. That is the theme of our April 26 talk at the Professional Pricing Society conference in Chicago. But it is also changing how we price. Let’s open up our thinking and explore different ways we could apply AI to pricing.

Total Cost of Ownership (TCO), Return on Investment (ROI) and Value are ll used in price setting an justification. How are these related? Which approach works best? A value model is at the heart of a successful value program and critical to managing churn.

Churn is the first of the six Net Revenue Retention Levers to look at. Begin by understanding the natural rate of churn for your solution. If you are above the natural rate of return, then churn is where you need to focus. Ibbaka can help you use value and pricing to reduce churn.

SaaStr recently had a series of interesting posts on pricing. One of them tells the story of a new CRO justifying price increases because of higher costs. Is this ever a good move for a SaaS company?

Many companies start worrying about pricing when they encounter a symptom that they associate with a pricing problem. A classic example is churn. But pricing is only one of the possible causes of churn. Trying to fix churn by changing pricing will only work in certain circumstances.

Gross Retention Rate (GRR) remains vital in the realm of SaaS metrics. Not only does it offers a clear insight into customer value and satisfaction, alongside Net Revenue Retention (NRR), but it serves as a crucial pillar for achieving long-term, sustainable growth. Track this metric religiously, integrate it as a KPI, and allocate resources wisely to enhance your gross retention trajectory over time.

NRR is the critical metric for SaaS companies and measures the organic growth from within the customer base. There are different ways to drive NRR: reduce churn, grow revenue with current customers and discourage revenue shrinkage. As we near the end of Q1 2024, what are SaaS companies prioritizing?

One of the factors that determines willingness to pay (WTP) is perceived fairness. In this post Edward Wong looks into what companies need to do to make there their pricing is seen as fair.

Should B2B SaaS contracts include automatic price increase? Ibbaka shares poll results and gives some guidance on if and when to include such a clause.

Are you facing the age-old question: Should you raise prices when your costs go up? Dive into our latest blog where we embark on a thrilling journey through the world of pricing dynamics and cost management. Join us as we unravel the mysteries of sunk costs, variable expenses, and the delicate dance of pricing strategies in the SaaS world.

Churn sucks the life out of SaaS business models. In this PeakSpan Masterclass Karen Chiang and Steven Forth will diagnose the root causes of churn and how to use packaging and pricing to reduce churn and improve Gross Revenue Retention (GRR).

Where are people applying generative AI solutions? Ibbaka conducted a quick linked in poll to explore this. Here are the results. Not surprisingly, improving internal business processes is the most common use of generative AI today.

When should you sell your SaaS business? What will determine the value? How important is Net Revenue Retention? How is AI and generative AI changing the environment? Get insights from David Rowat of Strategic Exits.

Discounting is a fact of life in B2B SaaS. If you are going to discount, how should you do so? A fine grained approach can pay big dividends. First unpack discount to reflect the structure of your offer. Then repackage discounts to align with your business strategy and how you negotiate.

The layering in of AI has led Box to adjust its pricing. What can we learn from this that will help us to price other AI powered solutions?

Our thoughts on what to price, products, use cases or value paths seem to have struck a nerve. We did a LinkedIn poll on this theme and got more than 300 responses in 24 hours. Pricing of value paths is much more common than we expected.

Pricing is often divided into product pricing or services pricing. This is too simple an approach for companies that provide solutions to complex problems. Use cases and value paths can be a more compelling approach to pricing for companies that do more than sell a simple well defined product.