Setting Prices is Only the Beginning

Optimizing People, Process & Tools

Effective pricing requires a constant stream of data, iterations and approvals. With a clear process and access to the right tools and decision-makers, you’ll experience consistent execution and increase revenue through pricing strategies that work.

The success of your pricing strategy requires proper mix and implementation of several elements:

• Software: Pricing and configure-price-quote (CPQ) software can be a valuable enabler to your pricing programs. Yet, only one-third of companies have implemented CPQ tools. In addition, you may need assistance deploying new software, developing your end-to-end pricing process or providing cross-functional training to ensure consistent adoption and usage.
• Tools: Whether or not you have pricing software, additional tools may be required to support your pricing functions, including Tableau, Power BI, Excel and other platforms which support pricing visibility and execution.
• People and processes: Processes must clarify the roles and responsibilities required to carry out your pricing strategy. In addition, you will need to integrate any existing CPQ and selling tools by mapping out the data and reports required to facilitate the ideal process. Finally, the right organizational structure, decision hierarchy, escalation procedures, sales guidance and controls support proper execution.
• Execution: Proper execution includes aligning pricing and sales processes, developing customer-level phased implementation plans, training the sales team to deliver new pricing and tracking KPIs specific to pricing.
• Ownership: Functional ownership of pricing strategy and execution can significantly impact revenue. For example, our research indicates that organizations with Revenue Operations-owned pricing offered 1.5x lower discounts and maintained stricter controls on their sales teams. The right ownership and organizational structure are critical to support price realization.

Alexander Group can help you coordinate the functional elements and operational diagnostics required to deploy your pricing strategy, resulting in efficient, enhanced revenue growth.