As one of the four marketing Ps, Pricing is the most powerful lever a company has to boost profitability. According to a well referenced McKinsey & Company study, a 1% increase in price results in an 8% increase in profits for a typical S&P 1500 company.
Profitability is impacted at every stage in the value realization process - from assessing the market potential of a product, all the way through capturing and acting on customer feedback, improving customer satisfaction, bolstering loyalty, and ultimately strengthening the business.
Each phase of the Value Realization Model is comprised of many activities required to successfully sell a product or service into the marketplace. Most companies exert effort in all phases of the model to some degree or another, however, what differentiates the most successful companies from their peers is the level of self-understanding within each phase and the whether or not they act on their understanding to take advantage of improvement opportunities. We have found that there are key areas within each of the five phases where most companies need assistance in order to achieve their full potential:
If you are like many of our clients you may suspect you have a pricing problem but dont really know where to start to understand the issues, let alone, correct them! No fear, we have a diagnostic that is used to assess the current capabilities, identify the gaps & opportunity areas, and plan for corrective action.
Knowing your market is a critical and foundational element for being able to execute on sales and organizational strategies. Without market knowledge companies are flying blind, and the risk of organizational failure increases immensely. Who are the major compeitors in our area? Who are the sleeper competitors that we need to closely watch? Who are our customers and are there different segments of customers with niche needs? We offer premier market research capabilities that will answer the most important questions about market competition, your current customer base, and what customer segments you should be targeting!
When it comes to your offering, you need to be sure that the products and services you sell into the marketplace meet the needs of your target customers. Companies should ideally sell customers solutions, not products or services - this even applies to commodity products - customers are paying for problem solving. Does the product contain features that help your customers solve a problem? What benefits do customers derrive from those features? What quantifiable value is driven from those benefits? Answers to these questions ultimately help one understand "What are customers willing to pay for our offering?" We offer tremendous primary research capabilities that will answer the most important questions about your products & services - providing a view of value from your customer's perspective!
You need to be able to communicate effectively about how your offering solves specific problems and provides value to customers. Customers want to be cared for, nurtured, and feel like they have a partner in the supplier that they buy from. A big part of developing customer trust is to communicate transparently and simply about your products and services. We can help you generate captivating marketing content that not only will your target market love, but you potential customers will be searching for it - this is called 'pull marketing' or 'inbound marketing' and is an area of expertise of ours.
You understand your customers needs, you have developed a solution that meets those needs and solves problems, and you have communicated the value of this solution into the marketplace. Now you need specific value propositions prepared for your offerings so that your sales force can have effective customer conversations and quickly produce profitable quotes using accurate pricing information. Your sales team must have have the appropriate training and job-aids to facilitate an effective sales dialogue. We can help your organization develop the value proposition statements for your offerings and ensure that sales has the information needed to engage in valuable converations with potential customers and ultimately close the deal.
Your team made the sale, time for a brief celebration to aknowledge success! However, the work is really just begining. You need to keep your customer's happy and retain them through nurturing and structuring effective loyalty programs. You also need to be able to stay ahead of your customer's needs as well as your competition by leveraging powerful insights that are currently locked inside your troves of data. Insights gained from examining the tens-of-thousands of existing data points including: historical sales transactions, customer purchasing patterns, competitive pricing intelligence, product profiability metrics, and many others, will allow your organiztion to know if you are making progress towards achieving your organization's strategic goals, and more importantly, course-correct if needed. We can help you set up an efficient analytics capability that will make heads and tails out of your Big Data and provide you with even bigger insights!
Generating leads is a marketer's single most important objective. Yet, only 1 in 10 marketers say their lead generation efforts are highly efficient and effective! We've put together the 30 best lead generation lessons in a downloadable guide so you can start reeling in those leads.