3 Pricing Program Initiatives to Continue Monetization in 2019

To truly differentiate yourself in the market, top companies think about how they can continuously set themselves up to grow Revenues from their customer base. As you head into 2019, question the existing norms. Ask how you can differentiate yourself.

For many organizations, better or worse, the table is set for 2018. For companies with averages sales cycles three months or longer, any new initiatives will have little to no impact on this year. Many complex sales in the Technology Industry have average sales cycles that are closer to 6-12 months long. The time is now to rollout pricing initiatives to ensure you hit your 2019 financial objectives.

This is especially important as an organization matures over time. Growth objectives cannot always be attained through pursuing new accounts. Growing your base business is an essential lever to pull when your organization has aggressive revenue goals.

Now that you have narrowed your focus to your existing customers, the next question is how can we continue to monetize our customer base over time? Start moving on these three initiatives now to ensure they have the desired impact you want next year.

Download the Pricing Segment Framework Guide to discover how top companies think about their pricing by segment, evaluate the proper way to think about your own pricing strategy, particularly with your valued customer base.

Three Pricing Program Initiatives to Begin Implementing Now

1. Re-Evaluate Willingness to Pay: Willingness to pay is the maximum amount a customer is willing to pay for your organizations product or service. While many may have conducted a study to determine customers willingness to pay at one point, this is likely a dated exercise. Solely considering market inflation, any efforts that are over three years old are due for a refresh.

    

    

2. Align Pricing to Customer Segments: As organizations begin planning for 2019, a key initiative that should be done is refreshing Market and Account Segmentations. For most companies, this is a standard operating procedure. But few take the extra step of aligning pricing to their customer segments. There is no single “right” price for your product or service. Customer willingness-to-pay is highly variable. Unless you can set prices by customer segment, you will always be leaving revenue and profits on the table. To do this successfully, you must have a deep understanding of the willingness-to-pay, the attributes of an account that dictates willingness-to-pay, and the account needs you must satisfy to command pricing at that level.

    

    

3. Product Upgrades for Existing Customer Base: Organizations with a mature product offering often have a deep install base with outdated versions of core product offerings. When handled correctly, this can be a massive growth opportunity for an organization with a high market share. Having a strong interlock between Finance and Product Marketing is the first step to capitalizing on this. Positioning an upgrade effectively at the right price is a huge lever to pull in driving growth from your existing customers

    

These three pricing initiatives are all viable options to drive growth from a company’s install base. However, these are complex projects that cannot be completed, implemented, and communicated to the organization overnight. Now is the time to start moving!

Want to Ensure Your Pricing Initiatives Gain Traction?

Are you considering pursuing these pricing initiatives to set yourself up for a successful 2019?  Or are you going to continue to go with tried and true?  To truly differentiate yourself in the market, top companies think about how they can continue to monetize their customer base.

Use our Pricing Segment Framework guide, or reach out to one of our experts, for more help on the subject.

Download the Pricing Segment Framework Guide to discover how top companies think about their pricing by segment, evaluate the proper way to think about your own pricing strategy, particularly with your valued customer base.

Need a Pricing Strategy overhaul? Schedule a working session at SBI’s Studio. As a guest of The Studio, you’ll get unlimited access to SBI’s CEO, Partners, and a handpicked team of Pricing experts. Together we’ll focus on developing an action plan to continue to monetize your customer base by getting a month of work done in just eight hours. It’s an amplified experience that you can only get in one place: The Studio. I hope you join us.

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