Creating value that counts for the one that should pay the price. So, Who will pay the price? This may sound like a phrase from The Godfather, but there’s actually no pun intended here.
As we move into an even more experience based economy the focus on securing customer loyalty is ever so important. The customer will pay for the value you offer if they are fully clear on your value proposition, if it meets their expectations, there are no surprises and there is transparency and clarity to your offering. When you achieve this you have achieved a great balance between profits and customer satisfaction.
The challenge is when you struggle to pitch the value you bring to your customers. If you can’t convince your customers to pay the price for the service or product you offer, you are facing some real issues. In those instances the harsh truth is that your organisation will pay that price. Whether it may be in further investments on repositioning your offering, maybe allocate more resources or sadly, just loss of business, but a change is needed.
An organisation today cannot afford falling behind on meeting customer expectations nor dropping the ball on creating perceived value. The competitive race is too tight and speed is of the essence.
How do you create value that actually counts? Both for you and for your customer. In this year’s edition we will focus on a few key aspects of pricing:
- Knowing your customer
In order to create a value proposition you have to know your customer. This boils down to having the right insights and data at the right time so your value can be delivered correctly.
- Find new forms of contracts
Many customers today are unwilling to pay unless they see results, therein lies the value for them, this puts pressure on the industry to seek new models for contracting such as Performance based and Outcome based. How should KPIs be structured to support these new contracts?
- Excel commercially by breaking the siloses
Many still fight with the lack of cross departmental collaboration that is required for true commercial excellence and that the pricing function should be regarded as a proactive steering function with true effect on the organization’s bottom line. How can we break the siloses and create an organisation wide strategy? How do you work long term with rebates, discounts, incentive programs for customers?
Truth be told, customers are picky, the expectations of value are high. But when done correctly, a synergy between profitability and customer satisfaction is created, and there are economies of scale to that balance.
So the true winners will be the ones that can create value that counts, both for the customer and for the organisation’s bottom line.
Join us and discuss with your industry peers on how they create value, what they see as the future of pricing and how they are currently combating the challenges of change.