Pricing Strategy Insights & Research | GTM Pricing Innovations

Last week, I asked, “Is your sales team blocked on positioning value?”

To build a value-based culture, you need to make sure that your sales team is prepared and ready to execute on your value-based pricing strategy. In our line of work we often find that sales teams are unable to transparently position and communicate the differentiated value of the offer they are trying to sell. They also feel poorly supported in doing this. If people are not comfortable positioning price in the context of value it is difficult to win sales without discounting and to build the value of the business.

Pricing is where all marketing and sales efforts are truly tested. It is the key metric that drives other economic measures. Lifetime customer value (LTV), revenue (including ARR if you are SaaS based), and profitability all depend on your pricing. There is an intrinsic relationship between value and price.

Business turns around the value cycle of Value Creation, Value Communication, Value Delivery, Value Documentation and Value Capture through price.

By getting a fair price for the value created for the customer there is a surplus created that can be reinvested in innovation to keep the value cycle turning.

Ibbaka Valio is a software as a service (SaaS) application to help businesses quantify and illustrate the value that they deliver to their customers and to tie value and price together. Businesses launching innovations can remove the friction of communicating value in a way that can be well understood by customers. Ibbaka Valio provides both a vendor (company) view and a customer (buyer) view. Buyers benefit by understanding what value they are getting and how this is growing in over time.

It is not enough to communicate value through sales and marketing. Value communication, delivery and documentation has to continue across the customer journey. Ibbaka Valio connects value and price across the customer journey. The results are:

Pipeline conversion ratios improve

Pipeline velocity accelerates

Discounting is reduced

Retention improves (churn goes down)

See more on Ibbaka Valio here

Value-based pricing 2.0 goes beyond ringing the sales bell

What is your target value ratio?

The Value Pricing Dashboard will be where you integrate applications across the customer journey

A value model will change your business

The customer journey is your guide to pricing communication

Accelerate business growth with Ibbaka’s Value Pricing Dashboard (This Post)

Is your sales team blocked on delivering value?