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.
- Ideal customer profiles
- Customer acquisition cost by product
- Customer lifetime value by product
- Account potential
- Account scoring
- Propensity to buy formula by product
- Willingness-to-pay by segment
With this phase completed, it is time to move on to Phase 3: Buyers.