Digital pricing transformations are crucial drivers for profit improvement. However, without a clear commercial focus, these projects fail. To become a Pricing Star, companies need to clearly define their commercial strategy, pricing structure, and digital needs. Only once their commercial and digital roadmaps are in sync can firms start reaping the benefits of digital pricing, as the authors explain.
Digital transformation is a broad term used to refer to significant technological changes across human resource, supply chain, customer service, marketing, and finance systems. As a company digitizes, they can increase their capability to monetize assets and optimize their existing data to better inform pricing decisions (and value capture). This in turn makes pricing a prospective part of the transformation journey, as the author explains.
Companies can capture hoped-for value from their pricing transformations by matching technology solutions to their unique needs and avoiding common pitfalls. In this article, the authors provide a roadmap for designing and implementing a pricing transformation process and outline potential roadblocks and common mistakes to avoid.
Nike’s digital strategy has been building towards a dream of personalization at scale. The lynchpin of this strategy is the Nike membership program, which allows Nike to digitize customer interactions. Their app ecosystem allows Nike to collect data on customers that power personalized commerce experiences. One of those apps is Nike Training Club. In this article, the author explores how Nike employs Freemium strategies to engage new users and then moves into personalized subscriptions, product sales and more to maintain customer relationships.
Digitalization is changing the marketplace and new factors are influencing pricing success. Drawing on the results of Simon-Kucher’s Global Pricing Study, this article shares five ways companies can escape growing pressures on pricing and sales by turning digitalization into an opportunity.
Digital pricing techniques have the potential to generate sustainable profits for a wide range of businesses, but using traditional pricing models is not an effective method for monetizing innovative solutions based on digital technology. In this article, the author explores examples of companies who have developed pioneering pricing solutions for digital and IoT technology offerings, and provides best practices for developing digital technology pricing strategies.
Streaming services are the big rage, but instead of aggregating and creating discounted bundles, each streaming service is selling “take it all or nothing” deals. Streaming services need to put a little more thought into their pricing strategies and provide more affordable options, as the author explains.
Machine learning and artificial intelligence have become very popular topics in the pricing community. However, many perceive these tools as overly complex and not practical to implement quickly into their existing processes. In this article, the author presents a machine learning technique called regression analysis and demonstrates simple applications that can be readily employed by pricers in any industry.
As companies move closer and closer to commercializing their digital offer, they run the risk of undervaluing the technology. To mitigate this risk, it’s important to develop a value-based pricing strategy and to consider this strategy from the onset of the advanced solution, rather than as an afterthought. In this article, the author presents strategies to help your organization determine a fair economic value for your advanced solution.
Regardless of industry, companies need to better understand and more confidently embrace the ways in which subscription- and consumption-based models will change their business, the new strategies that will apply, and the new practices they will need to establish, as the authors explain.