THE VALUE & PRICING BLOG
The latest stories, blog articles, and pricing news from the Ibbaka team
Pricing and NRR: Five Questions About The PeakSpan Ibbaka NRR Survey Results
The PeakSpan - Ibbaka survey on NRR performance has attracted a lot of interest. Here are five of the most common questions about the report together with the answers. Managing NRR is critical to SaaS performance.
Pricing and NRR: The PeakSpan Ibbaka NRR Survey Results
The PeakSpan - Ibbaka survey on NRR performance was conducted in May and June of 2023 and gathered deep data on Net Revenue Retention (NDR or NRR) performance. Data are analyzed by SaaS vertical, packaging architecture, pricing metrics, organizational design and business focus. Overall, NRR is expected to decline slightly in 2023, but with a clear divergence between the best and the rest.
Pricing and NRR: The Six Factors to Manage
The PeakSpan - Ibbaka survey on NRR performance uses the six NRR factors to get deeper insights than is possible with a more generic approach. You have to understand how much each of the factors is impacting NRR in order to put together an effective strategy.
Pricing and NRR: What are the key questions?
At SaaStr, Ibbaka and PeakSpan will be releasing a major survey on Net Revenue Retention (NRR also known NDR for Net Dollar Retention). What are the key business questions that SaaS leaders should be asking about NRR? What are the critical benchmarks?
How you do anything is how you do everything
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.
Prioritizing NDR growth choices
With six levers to use to improve NDR where should you focus your effort? Make sure churn is under control then look for where you can have the biggest impact.
NDR Growth Tactics 6: Managing Churn
The sixth NDR lever is churn management. Churn is the great enemy of SaaS businesses and understanding why churn is happening and how to reduce it is a critical part of managing a SaaS business. Churn is the denominator in the equation for customer lifetime value.
NDR Growth Tactics 5: Reduce Package Down-sell
The fifth NDR lever is reducing downsell, where customers move from a more expensive to less expensive package. How can one avoid this, or at least minimize the impact? We explore this challenge here.
NDR Growth Tactics 4: Avoid Package Shrinkage
The fourth NDR lever is avoiding, or minimizing, package shrinkage. One thing that can reduce NDR is reduction in revenue from an existing package. What can we do to eliminate, or at least minimize, in package shrinkage?
NDR Growth Tactics Webinar | May 11, 2023
Join Karen Chiang and Steven Forth for a webinar on tactics to improve Net Dollar Retention, sponsored by Vantec, WUTIF and EFund. May 11, 2023 at 8:00 AM Pacific Time.
NDR Growth Tactics 3: Promote Cross-Sell
The third NDR level is to promote cross sell. NDR applies at the customer level so cross selling will improve NDR. Cross sell can include both value added services and additional product lines. Both can have a big impact on revenue and profitability.
NDR Growth Tactics 2: Drive Up-sell
Companies optimizing NDR have six levers to pull, three positive, three negative. In this post we look at the second of the positive levers: driving upsell across packages.
NDR Growth Tactics 1: Grow in Package
Companies optimizing NDR have six levers to pull, three positive, three negative. In this post we look at the first of the positive levers. Grow in package.
Managing Package Performance to Optimize SaaS NDR
To optimize Net Dollar Retention (NDR) one needs to track package performance closely and optimize monthly. What should be tracked? What actions should be taken?
Pricing for profit - the paradigm shift in B2B SaaS pricing
There has been a paradigm shift in how investors are thinking about their B2B SaaS portfolio. The changing economic climate and higher interest rates are leading investors to pay more attention to NDR/NRR (net dollar retention or net revenue retention), gross profit and cashflow. This is cascading through to changes in pricing strategy.
How pricing can help fix NDR challenges
Net Dollar Retention (NDR) or Net Revenue Retention (NRR) is a key metric that investors are using to measure the health of their portfolio companies. Pricing and packaging has a big impact on this metric, but not always in the ways one expects. How can pricing help improve NDR?
Net Revenue Retention impacts the value of your company
Net Revenue Retention (NRR) or Net Dollar Retention (NDR) will be a key way that B2B SaaS companies demonstrate their value to investors in 2023. Pricing will play a critical role in how companies improve NRR and NDR. As you price to improve NDR in 2023, plan for how this will position you in 2024.
Pricing for NDR (Net Dollar Retention)
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?
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