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The Digital Pricing Framework
Our unique pricing framework drives best practice processes across your organization to ensure an end-to-end development and delivery of market winning offers.
From offer design, to sales enablement, to laser-focused execution - this continuous cycle of improvement ensures your company makes pricing and commercialization excellence a strategic capability that delivers results.
CONTINUOUS CYCLE OF PRICING IMPROVEMENT
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OFFER DESIGN. Develop the right offers, at the right price, to the right clients.
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ENABLEMENT. Drive the desired pricing strategy outcomes with enabled Sales teams and channel partners.
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EXECUTION. Best practice implementation of pricing strategies that delivers profitable deal wins and drives lifetime client growth.
Figure 1: The Digital Pricing Framework
Figure 2: The Digital Pricing Framework Sub-Processes
Offer Design.
From strategy, to value analysis, to price structure development (packaging, metrics, tiers), to financial analysis and price stress testing – the offer design phase ensures product and pricing teams bring in the right inputs and analysis to drive the most favorable value-based segmented pricing and offer structures. A stress-tested commercial price list is the final output of this phase that ensures both Sales and Product teams are armed with the right pricing tools that drive a successful go-to market strategy.
Enablement.
Whether its internal Sales teams, channel partners, customer success representatives, and even technical support staff - enablement is a critical activity for understanding how one’s software is packaged, priced, and linked to one’s ”value story”. New pricing strategies and business models are accompanied with " all-on-board" organizational alignment programs and effective communications that bring transparency to new pricing structures, deliver new monetization opportunities, as well as awareness and compliance with respect to new guidelines and policies.
Execution.
Applying an effective bid-evaluation process, assigning pricing negotiation policies, and applying pricing approval matrices avoids a " race to bottom" price approach when submitting best-and-final-offer (BAFO) in bids. As well, consistently monitoring win/loss outcomes, optimal key performance indicators (KPIs), and insights from post-bid award reports are critical to act as an Early Warning System for on-going re-adjustment to pricing and offer structures.
The Pricing Ecosystem (PECO).
At the centre of the framework is what is termed PECO; this includes all other people, processes, systems, and policies within an organization that are impacted by changes to pricing strategies, structures, compliance, and policies. Crossfunctional teams impacted by pricing can include Accounting, Legal, Sales Operations, Contracting, Reporting, IT, and Customer Service (to name a few); these teams must be informed and consulted during the pricing review process.
World class organizations excel at making pricing, offer design, and commercialization a strategic capability.
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