USE THE STRATEGIC CHOICE CASCADE FOR PRICING 18 Be clear about how goals build from Winning Aspira琀椀ons to Where to Play to How to Win Choices. The Capabili琀椀es and Systems needed to support these choices can be covered as exe- cu琀椀on plans are put in place. WINNING ASPIRATIONS • Alignment with overall strategic goals • Pricing goals • Pricing Metrics and Targets WHERE TO PLAY INFORM CONSTRAIN HOW TO WIN CAPABILITIES SYSTEMS Acronyms The strategic choice cascade for pricing is a ARR Annual Recurring Revenue powerful framework for pricing governance MRR Monthly Recurring Revenue NDR Net Dollar Reten琀椀on It is adapted from Roger Martin’s Strategic LTV Life琀椀me Value of Customer Choice Cascade V2C Value to Customer VR Value Ra琀椀o (LTV / V2C) GtN Gross to Net CRM Customer Rela琀椀onship Management CPQ Con昀椀gure Price Quote Ibbaka’s Pricing Planning Guide & Checklist for 2024 November 2023