Usage or consumption pricing has been widely recommended by SaaS pricing experts over the past few years. How well has it been performing? How resilient will it be in a more challenging economy?

The platform with extensions pattern is one of the most flexible SaaS packaging patterns. It opens new ways to drive revenue growth. Here is some guidance on how to price SaaS solutions using this pattern.

In a tough stretch for the tech sector AI, and especially content generation AI, has been getting a lot of love. This is only sustainable if these AIs are creating value and that value can be priced. How can we do this?

Pricing model has a big impact on revenue growth. And as the business environment changes the pricing model should change too. The Maxio Institute has recently published its 2023 Growth Market Report. We look at the lessons this has for pricing design and execution at SaaS companies.

Over the past 6 months, we have seen many companies shift their focus from ARR (Annual Recurring Revenue) to growing NDR (Net Dollar Retention - also known as Net Revenue Retention). How do you use the value and pricing levers to grow NDR?

Usage-Based Pricing is a hot topic. It fits well with Product-Led Growth (PLG) and is a critical step on the way to Outcome-Based Pricing. Ibbaka and OpenView Venture Partners have been documenting what you need to do before, during, and after you introduce Usage-Based Pricing.

Usage-Based Pricing uses a measure of usage as a pricing metric. It is often combined with other pricing metrics to create a hybrid pricing model. Research has found that companies who include a usage-based metric grow faster. A well designed usage-based pricing metric connects price to value.

Usage-based pricing has emerged as a critical component in pricing design. Important in its own right, it is also a step on the path to the Holy Grail of pricing - outcomes based pricing. Success requires new skills around prediction, value paths and customer success.

Too many companies negotiate a price during the sales process and then forget about it. This is a recipe for failure. Pricing and value are closely connected. The pricing-value conversation continues across the customer journey. Keeping this conversation current is how to drive renewal, cross sales and upselling.

Service-led growth is driven by a positive feedback cycle. This cycle has a lot in common with the cycle that leads us to form good (and bad) habits. A concept blend of service-led growth and the habit cycle gives new insights into how to make service-led growth work.

In early May 2021 Karen Chiang and Steven Forth gave a two day workshop on applications of the strategic choice cascade to pricing. The case study featured a choice on data monetization for a precision agriculture company. Different winning aspirations led to very different pricing strategies.

Ibbaka is a highly collaborative company. We work to build a community of people and organizations committed to creating and delivering value, whether that be economic, emotional or pricing. Some of our work is on pricing. Some is more focussed on innovation. In all cases we are looking to help people develop their skills. One way we do this is through our collaborations with the venture capital firms Arthur Ventures and OpenView Venture Partners.

Usage-based pricing is a best practice and a key step towards outcomes-based pricing. This sounds good, but what usage? Should any click be used for the usage metric that becomes part of the pricing model? Value paths are are a sequence of actions that lead to value. They are different from but related to value streams. Identifying value paths and then making them part of your pricing model is the key to usage-based pricing.

Just because you have professional services and software subscriptions and data does NOT mean you are driving a service led growth model. You have service led growth when services predict subscriptions and subscriptions predict revenue. Prediction is key. To really get the crank turning, data is also monetized and the platform is constantly reducing the cost of service delivery while increasing its value.

Usage-based pricing puts new requirements on the systems we use to manage pricing and billing. LogeSense was designed for usage-based pricing and to support hybrid pricing models. We spoke with CEO Adam Howatson to understand where a leading vendor sees usage-based pricing going.

Usage-based pricing is one of the themes in 2021. Both product led growth and service led growth strategies work best when there is an element of usage based pricing. But where to start? We walk you through the best way to layer in usage-based pricing.

In a time of great uncertainty transfer risk from your customer to yourself. One way to do this is with usage based pricing. Layering in usage based pricing is a good pricing strategy to increase willingness to pay (WTP).