Minimize Churn and Boost Your Net Dollar Retention with Karen Chiang
Impact Pricing17 Heinä 2023

Minimize Churn and Boost Your Net Dollar Retention with Karen Chiang

Karen Chiang is a co-founder and managing partner of Ibbaka, a company that provides software and expertise to enable business growth by optimizing revenue performance through customer value management and talent optimization.

In this episode, Karen discusses the importance of linking your pricing to value and creating pricing packages that accurately reflect the value provided to consumers.

What you will learn from this episode:

  • Understand the concept of net dollar retention in relation to your customer base and as a means of measuring your revenue from operations
  • Learn how to effectively package your offers by linking value to pricing
  • Explore these net dollar retention levers to better understand the value your customers are seeking

"Getting to a value-based mindset is extremely important in order to improve your pricing power."

- Karen Chiang

Topics Covered:

01:19 - How she got her into pricing

02:33 - Defining 'net dollar retention'

04:48 - Pricing as it relates to net dollar retention

09:18 - Linking pricing to value [where churns are concerned]

11:25 - Strategy to keep half a customer rather than losing completely

13:56 - What you must think about in the design of your offer

15:03 - What is product packaging and how it differs from cross-sell or upsell

18:23 - Pricing models and various packaging designs

19:32 - What a cross-sell and upsell are in terms of using the good, better, best

25:12 - Karen's best pricing advice that can impact one's business

26:29 - Net Dollar Retention levers by level of importance

29:04 - Usage based pricing as part of net dollar retention levers

Key Takeaways:

"Pricing has to be linked to value. When you think about it, we want to come up with a pricing method or approach that really tracks the value that is being generated." - Karen Chiang

"There always has to be an understanding of what you are negotiating. What will you give up in your package to make it more feasible for that discount? That's why it's actually a shrinkage in the package itself." - Karen Chiang

"From the get-go and from the design, when we think about the design of our offers, we really have to be more cognizant of, what are the different components that go into that entire offer?" - Karen Chiang

"A good, better, best strategy is one where you try to get people into a certain level, starting with good and you're trying to increase their growth and package by getting them to a better package then a best package." - Karen Chiang

People / Resources Mentioned:

Connect with Karen Chiang:

Connect with Mark Stiving:

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Understanding Context-Driven Pricing: The Key to Maximizing Willingness to Pay with Mark Stiving

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Mark Stiving is a pricing expert and the host of the Impact Pricing podcast, where he explores the intricate relationship between pricing, value, and context. With a wealth of experience in pricing strategies, Mark is passionate about helping companies maximize their revenue through effective pricing techniques. Steven Forth is the co-founder and Managing Partner at Ibbaka, a leading pricing strategy consultancy. With deep expertise in B2B SaaS pricing and value-based pricing models, Steven has been at the forefront of pricing innovation for over two decades. He's passionate about the intersection of pricing strategy, customer value, and emerging technologies like AI agents. In this episode, Steven turns the tables on Mark to explore context-driven pricing – Mark's revolutionary framework that's changing how pricing professionals think about willingness to pay. Together, they dive deep into the four contexts that drive every pricing decision, the three-layer business framework that organizes pricing strategy, and why perfection is the enemy of progress in pricing.   Why you have to check out today’s podcast: Discover the concept of context-driven pricing and its significance in today's market. Learn how different contexts, such as environmental and customer factors, influence pricing decisions. Understand the importance of defining the problem to effectively implement pricing strategies.   “Willingness to pay is contextual.” – Mark Stiving   Topics Covered: 01:37 – What motivated Mark to think about Context-driven Pricing? 03:15 – The four categories of context: problem, customer, behavioral, and environmental. 04:52 – How environmental factors influence willingness to pay? 06:01 – The role of competitors in shaping pricing strategies. 08:13 – Understanding the foundational problem and its impact on pricing decisions. 14:01 – The intersection of context-driven pricing and AI. 24:58 – Key takeaways on implementing context-driven pricing effectively.   Key Takeaways: “Pricing is about understanding the context in which a buyer operates.” – Mark Stiving “Defining the problem is crucial to determining willingness to pay.” – Mark Stiving “Perfection is impossible; focus on being better every day.” – Mark Stiving   Resources and People Mentioned: Steven Forth: https://www.linkedin.com/in/stevenforth/ Ibbaka: https://www.ibbaka.com/ Craig Zawada: https://www.linkedin.com/in/craig-zawada-a0a39029/ Pros: https://pros.com/ Stephan Liozu: https://www.linkedin.com/in/stephanliozu/ Zilliant: https://zilliant.com/ Gabe Smith: https://www.linkedin.com/in/gabesmith/ PriceFX: https://www.pricefx.com/   Connect with Mark Stiving: LinkedIn: https://www.linkedin.com/in/stiving/  Email: mark@impactpricing.com

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