PRICING ACTIONS TO CONSIDER 24 ADD A PRICING METRIC One of the most e昀昀ec琀椀ve ways to improve pricing is to add a pricing metric. Having two pricing metrics (hybrid pricing) makes it easier to design pricing that aligns with value (this is normally very di昀케cult with only one metric). Generally one combines a commitment based metric with a usage based metric. A commitment based metric that gives both par琀椀es predictability • This is o昀琀en the number of users or some other metric that can be known and commi琀琀ed to in advance A usage based metric that scales with usage • The metric should be designed so that it scales with value but • Does not discourage the use that drives the value Both metrics should track value such that the price paid re昀氀ects the value to the customer (V2C) Ibbaka’s Pricing Planning Guide & Checklist for 2024 November 2023
Ibbaka Pricing Planning Checklist Page 23 Page 25