Many companies focus on cost reduction as the easiest value driver to define. But there often cases where revenue is a more powerful value driver. Why do so many pricing and marketing teams default to cost value drivers? Revenue value drivers are playing a key role in green or sustainable solutions.

Change is everything, and everything is changing. Nothing stands still. Observing the change and acting upon the insights is critical, especially in the dynamic world of SaaS companies. That is why we are adding a new analytics module to the Ibbaka Valio platform.

B2B pricing work usually focuses on the economic value, but that is only part of the story. Few B2B sales take place without an emotional commitment from the buyer. Emotion, how buyers and users feel about a solution, are also central to the customer journey and impact subscription renewal. Understanding emotional value drivers is part of B2B pricing.

Pricing and value management can play a key role in giving direction to innovation. Value drivers are one way to do this. Does the innovation augment an existing value driver or create a new one? Does it do this for existing users or for new users? Understanding value is the key to successful value creation and capture.

While on medical leave, I had a chance to take a step back and think about emerging issues and best practices in pricing. I put down some of these thoughts in a series of posts on LinkedIn: Pricing Generic AI, Pricing Microservices, Organizing Value Drivers, Integrating Pricing Models, The 4Cs of Pricing. I also shared some thoughts on design from my stay in hospital.

Understanding value drivers is critical to work in Product Management, Marketing, Sales and Customer Success. Value drivers come in 3 flavours: Economic, Emotional and Value. Understanding value drivers is central to effective pricing demand and value management.

Pricing strategy is critical to commercial excellence. Without a pricing strategy pricing drifts into throw it at the wall pricing and becomes a frozen accident. What are the key aspects of pricing strategy? This post gives you a concrete introduction. It is a great place to get started.

Discover the transformative potential of strategic pricing with Ibbaka. Our insights on dissecting Roger Martin’s Strategic Choice Cascade, crafting winning aspirations, targeting high-value market segments, and executing tactical decisions to connect value metrics with pricing strategies.

The migration of licensed pricing models to subscription of SaaS pricing models continues. Many companies are asking how to migrate to the cloud and subscription models while protecting their established businesses. Begin with value-based market segmentation and then choose a pricing metric that tracks the value metric and differentiates from the licensed pricing.

Coming back from maternity leave during a pandemic has reframed my understanding of the importance of emotional and community value drivers. At Ibbaka we have always included emotional value drivers in our analysis. Recently we have added community value drivers. We have recently been focussing on trust. As a mother with a child in daycare I have a real appreciation of the value of trust and its implications for pricing.

Research has found that emotional value drivers play an important role in B2B pricing. In our recent work Ibbaka has found that it can be just as important to consider community value drivers, the positive (or negative) impacts a product or service has on the wider community. Including community value in market segmentation, customer targeting and positioning gives important pricing insights.

To thrive, to even survive, one must continually deliver new functionality to the market. For this to be sustainable, there has to be a return on the new functionality. It needs to be priced. In this post we explain how to price new functionality.

Why Use Value-based pricing? Pricing can be extremely complex to many as it is a nuanced art but also a strange science. There are many different pricing models and strategies to choose from. It's hard to know where to even start. If your product has differentiated offers and you want the most flexible model that can support different pricing strategies, value-based pricing is for you. Pricing models might seem complicated but here we break down the structure to show the basics of value-based pricing.

Ibbaka made the Ready to Rocket List for 2020. This list is in its its 18th year and celebrates the British Columbia’s high growth technology companies, those that are most likely to succeed. In this post we share Rocket Builders insights from the launch event.

Value drivers are generally stable over time. Once you understand them and have used them to segment your market you have a solid foundation for your pricing strategy. But when there is a severe supply or demand shock, and we currently have both, that can change. There are some standard patterns for how value drivers change. Understanding these is critical to planning your response to the COVID 19 crisis.

Value based pricing relies on a deep understanding of value drivers. In B2B pricing, the focus is often on economic value drivers. Most economic value drivers concern the profit and loss statement. But in some cases there are value drivers that impact the balance sheet. Understanding balance sheet value drivers is an important part of value based pricing.

Willingness to pay (WTP) is one of the most frequently abused concepts in pricing. Many people try to use it as a proxy for value. It is not. Other companies claim they can estimate willingness to pay through surveys. This is too simplistic. Why?

Willingness to pay is determined by framing and by the value delivered to the customer relative to the alternative. To measure willingness to pay without taking these into account is wasting an opportunity to really understand your customers and position the value you are providing.

Emotional and economic value drivers are both important in market segmentation and pricing design. This is especially true where goods like water is involved. WaterTrax (part of Aquatics Informatics) has been thoughtful and effective in designing its pricing.

We see a lot of b2b market segmentation in our work. Often these are the weakest part of the marketing plan. Many segmentation is typically limited to firmographic data and in some cases are simply a list of industry verticals. They are meant to find a market that fits the offer. Instead, we should segment based on emotional and economic value creation to build an offer that fits a market.

There is wide agreement that differentiation is critical to effective pricing, but what is differentiation and how do you create it? Enhance an existing value driver. Create a new value driver. Find a new market for your existing or new value drivers. In this post we look at the three basic ways you can develop differentiation for your offer and what these imply for your product and pricing strategy.