Can you identify your best customers? It sounds like a simple question. You may think, “of course we know who our best customers are!” But what actually constitutes a good customer? Can you articulate it? The very customers who by one metric (returns) would appear to be the worst were actually the most profitable. Conversely, customers that may appear to be your best may actually be hurting your company. How can we tease this out?
Many hope that 2021 will see an eventual return to normalcy (as much as possible), but it’s hard to know what 2021 has in store. Yet, despite the uncertainty, there are a couple of practical reflections that can help many businesses get ahead in 2021 in terms of revenue growth—whether that looks like recovering a damaged financial statement or accelerating an already revving profit engine.
Many companies are adding some form of predictive analytics to their offers. This is true across all sorts of businesses that collect a lot of data in the normal course of operations. At the same time, the rapid advances in machine learning since 2007 have made it much easier to develop predictive learning applications, and many companies are rushing to take advantage. But how do you package and price this new functionality?
The Professional Pricing Society’s December 2020 survey of pricing professionals received 752 responses from a cross section of industries across the globe. PPS conducts surveys with the hope that this information provides a good synopsis of where pricing stands as a career option while also providing a good demonstration of pricing’s status in the business world. For more information, please email contactus@pricingsociety.com.
Usage-based pricing is one of the themes in 2021. Both product-led growth and service-led growth strategies work best when there is an element of usage-based pricing. But where to start? In this article, the author walks through the best way to layer in usage-based pricing.
This paper is a reprint of Chapter 3 of the author’s most recent book – B2G Pricing - adapted for this Journal. B2G Pricing focuses exclusively on the nuances and specific tactics required in the area of business-to-government pricing.
China’s 2020 NRDL (National Reimbursement Drug List) process has been unfolding since July this year with a number of new changes and interesting twists. Based on the authors’ experience and observations, as well as ongoing discussions with key players and stakeholders in the industry, they have identified three themes and made five predictions on the likely outcomes of 2020 NRDL process.
Companies facing falling demand—for individual products or across portfolios—typically think about increasing discounts and promotions to reinvigorate sales. This is a natural reaction, especially in an economic downturn, like the one unfolding in 2020. But when discount programs are not carefully crafted, the intended sales lift does not occur. In this paper, we outline six key considerations for sales and marketing executives and C-suite leaders when planning and executing discounts. With these considerations in mind, companies can respond to the current demand challenge, while minimizing the risk of unintended consequences.
This case study outlines how to implement value pricing approaches in the difficult process of pricing a new pharmaceutical product. The process implemented in this project enabled the client to achieve market access in the US and the EU5 (Germany, France, UK, Italy, Spain) for a first-in-class, ultra-orphan oncology therapy.
Rapid changes in consumer and customer demand will require consumer goods companies—much like companies in other highly dynamic industries—to reset their revenue management practices in order to survive the coronavirus pandemic and thrive in the future beyond it, as the authors explain.