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:

• Steven Forth: https://www.linkedin.com/in/stevenforth

 

Connect with Karen Chiang:

• LinkedIn: https://www.linkedin.com/in/karen-chiang-2623241/
• Email: [email protected]

 

Connect with Mark Stiving:

• LinkedIn: https://www.linkedin.com/in/stiving/
• Email: [email protected]