If you’re just joining us, we’re here in Atlanta for the 30th Annual Spring Pricing Workshops & Conference at the Loews Midtown Hotel in Atlanta with some of our top pricing experts in the Syncron organization to share our insights and learn from others in the industry.
This morning we’re hearing from leaders at world-class companies and pricing communities – all talking about strategies to uncover the expanding scope of pricing today. First up was Paul Hunt, President at Pricing Solutions Ltd. discussing the 80/20 rule and how to amplify its impact in business by layering and streamlining pricing into processes.
Next, we’re hearing from Vishaal Jayaswal, Pricing and Value Leader at Cox Automotive as he discusses his version of “The Practitioner’s Guide to Making Pricing Strategy Deliver” and the valuable lessons he has learned (and unlearned) on this quest.
Pricing is a Critical Lever in Profitability
At their core, pricing practitioners have a strong desire for organizations to embrace and benefit from the power of pricing. But, there are very few organizations that do a great job in this space. Pricers deserve a seat at the table for key go-to-market strategic decisions, so why do majority of organizations not embrace them?
Digital innovation is happening. As the world goes digital, pricing models and segmentation models are causing go-to-market strategies to change. But, as we think 10 years ahead, we have to think, “how will people buy in future?” Over the course of 20 years, Jayaswal has seen ten different pricing transformations take place. And, the lessons that he’s learned have impacted the way he answers that future-thinking question.
Nearly half of attendees are pricing analysts, so it’s no surprise that 96% indicated that they believe that pricing is one of the most critical levers to drive near-term profitability for organizations. But, generally speaking, pricing is the most often overlooked way to drive growth. In fact, acquisition makes up 70% of most companies‘ focus on growth, followed by retention and monetization. Additionally, 79% indicated that their organization does not make excellent pricing decisions or consistently price at the right level.
How to Overcome Practical Process Challenges in Executing a Pricing Strategy
When it comes to aligning pricing with company strategy and goals, a few typical challenges arise. First, pricing strategy is not clearly documented and understood by business leadership. Secondly, corporate goals and objectives are often misaligned with the stated pricing strategy. And finally, more often than not, different functional leaders drive their own goals and priorities instead of executing on agreed pricing strategies.
To combat these challenges, there are three strategic solutions. First is to secure executive alignment and train the organization on pricing strategy and philosophy. Next, integrate pricing strategy reviews with annual strategic planning processes. And finally, incorporate pricing KPIs on enterprise dashboards to create executive accountability.
5 Winning Strategies (and 5 Failures) on the Pricing Strategy Journey
On his journey toward discovering the value pricing can deliver, Jayaswal has learned (and unlearned) some habits that impact success during a time of pricing transformation. Check out his 5 winning strategies, along with his 5 failure points and lessons learned below:
5 winning strategies:
- Pricing transformation is a journey, and keeping the organization aligned along the way is critical.
- Leverage innovative methods to understand customer value and willingness to pay.
- Extract maximum customer value through targeted profitability.
- Bring pricing insights in early in the new product development process.
- Enable sales teams with the tools, insights and guidance needed to execute.
5 failure points and lessons learned:
- Executive team not aligned on strategies.
- Underestimation of the change management impact in the field.
- Underestimation of the market and competitor response.
- Misaligned salesforce incentives or lack of disciplined execution.
- Data and reporting to measure success or failure.
Join us as we live blog our experience during the performance workshops, interactive working groups, and so much more. With nearly a week’s worth of networking, technology and strategy, we’re sure to come home with some of the best tools in pricing today!