Checklist for Pricing & Net Dollar Retention

Ibbaka’s Checklist for Pricing & Net Dollar Retention Ibbaka Performance Inc. 2619 West 3rd Avenue, Vancouver, BC, Canada V6K 1M4 [email protected] I www.ibbaka.com

WHAT IS THIS? Use this checklist to make sure you are doing everything you can to drive Net Dollar Reten琀椀on NDR (also known as Net Dollar Reten琀椀on or NRR). NDR is determined by six factors, three posi琀椀ng and three nega琀椀ve. POSITIVE FACTORS NEGATIVE FACTORS Grow in Package Shrinkage in Package Upsell Package Existing Customer Revenue Churn Rate Down Sell Package Revenue Growth Rate Cross Sell Package Increased Churn HOW SHOULD THIS CHECKLIST BE USED? Use this checklist to set a baseline for performance and then update it on a regular cadence. As part of the update, iden琀椀fy which of the six factors you will focus on for the next period and what ac琀椀ons you will take. WHO SHOULD USE THIS CHECKLIST? The people responsible or accountable for revenue growth should share ownership and update this checklist together. This will generally be the key execu琀椀ves for • Pricing • Product • Marke琀椀ng • Sales • Customer success Ibbaka’s Checklist for Pricing & Net Dollar Retention April 2023

ITEM CURRENT PREVIOUS COMMENT ACTION VALUE VALUE Current NDR + Grow in Package + Upsell Package + Cross Sell Package - Shrinkage in Package - Downsell Package - Account Churn Use the above informa琀椀on to create your NDR waterfall. In the example below NDR is 117% Positive Negative Subtotal 125 100 75 50 25 0 Recurring Growth in Up Sell Cross Sell Shrink in Down Sell Account Subtotal Revenue Package Package Churn for Period Ibbaka’s Checklist for Pricing & Net Dollar Retention April 2023

FREE GOOD BETTER BEST ENTERPRISE Package Role Volume Target Volume Actual Volume Difference Volume Y/Y Change Volume Previous Period Change Revenue Target Revenue Actual Revenue Difference Revenue Y/Y Change Revenue Previous Period Change Value Ratio Target Value Ratio Actual Value Ratio Difference Value Ratio Y/Y Change Value Ratio Previous Period Change Discounted Accounts Target Discounted Accounts Actual Discounted Accounts Difference Discounted Accounts Y/Y Change Discounted Accounts Previous Period Change Discount Amount Target Discount Amount Actual Discount Amount Difference Discount Amount Y/Y Change Discount Amount Previous Period Change The Checklist for Pricing and Net Dollar Reten琀椀on should be set up as part of the Annual Strategic Plan and then reviewed at a regular cadence (for most SaaS businesses this is a monthly or quarterly cycle). Ibbaka’s Checklist for Pricing & Net Dollar Retention April 2023

ANNUAL STRATEGIC PLAN Role and target performance of each package documented Target value ra琀椀o for each package set Monthly or quarterly reviews scheduled MONTHLY OR QUARTERLY REVIEWS Role and target performance of each package tracked NDR waterfall calculated Focus for improvement chosen Pricing and packaging ac琀椀ons iden琀椀fied MONTHLY OR QUARTERLY REVIEWS Pricing system instrumented to detect changes NDR components, value ra琀椀os and package performance Compe琀椀tors monitored for pricing and packaging ac琀椀ons Customers monitored for responses to pricing and packaging ac琀椀ons Ibbaka’s Checklist for Pricing & Net Dollar Retention April 2023