August 27, 2015
This blog is part of our “How to Be a Better Pricing Strategist” series, in which we asked top thought leaders and industry experts in the pricing field: “What is the best advice you could give a fellow pricing strategist?” Read all the responses here.
Successful pricing projects involve all stakeholders—internal and external. In order to execute on any strategies, you must keep three teams in mind.
To begin, identify what’s of value to your customer. How do your products create value for your customers? What does your company does better than the competition in areas that matter to your customers? From there, you need to strategically manage your customers by segmenting them according to the answers to the above questions. Not all customers are the same, so don’t treat them that way.
2. Cross-Divisional Support
Involve key players from other functions in your company. Remember that pricing is a team sport and you won’t be successful unless the whole team is “in the game.” Extending this team to include departments, such as Engineering and Product Development, will help ensure that even the new products being developed are of value to the customer and better than the competition in meaningful ways.
3. Frontline Sales
While the support of the whole team is important, it can all be given away by the frontline if your sales reps aren’t properly incentivized, sufficiently trained or armed with data-driven support for pricing and negotiations. Training should include not only your pricing strategy and the product’s value, but also how to best respond to the increasingly sophisticated procurement tactics.
If properly supported with data and company backing, your sales team will have the information needed to be more successful in their negotiations.
Having these items in place will help you to ensure that your company captures a better return for its investment in the research, development, production, and delivery of its products to its customers.
To read more expert tips and advice, take a look at our Pricing Best Practices SlideBook here.