Effective Pricing Begins with Sound Strategy
Pricing is just one lever, albeit an important one, by which organizations carryout their business strategy. Effective pricing therefore starts with sound strategic decisions that answer such questions as: which products, which markets, which offers…to achieve what objective?
Today’s global businesses compete on multiple fronts simultaneously. One-size-fits-all pricing leaves margin behind and creates competitive vulnerability. Multiple factors such as market trends, competitive dynamics, customer behavior and value proposition must all be considered. Companies that are equipped to clearly and accurately evaluate these factors are better able to leverage pricing as part of their business strategy and are more likely to achieve their objectives.
Analytical Horsepower Enables Informed Strategic Decisions
Vistaar's pricing software provides all the analytical horsepower product groups need to evaluate multiple data points and answer important strategic questions that ultimately drive price plans:
- Customer Value Assessment: Use segmentation and advanced analytics to examine historical data and identify customer groupings with similar price response characteristics
- Competitor and Market Analysis: Incorporate normalized competitive and market data to view apples-to-apples analysis and set accurate pricing benchmarks
- Pro Forma Financials: Use unique “what-if” scenario planning analysis to determine if proposed price plans align with the financial goals of the organization
- Measure, Monitor and Adjust: Continuously track performance to determine if the pricing strategy is driving objectives and adjust as needed
Consistency and Continuity are Keys to Long-Term Pricing Success
Organizations usually use a combination of skimming, neutral and penetration pricing strategies across products, customers and markets. As a result, implementing a successful price plan requires coordinated efforts across the organization. The Vistaar solution supports full collaboration between cross-functional teams and geographies that often view pricing from different perspectives. Vistaar’s guided analytics and easy-to-use templates facilitate rapid time-to-benefit and high adoption rates that deliver near-term results and long-term value.
To learn how a leading provider of storage infrastructure solutions and consulting services used Vistaar to implement a more systematic method for analyzing and determining the best pricing for its business click here.
