PHASE 14: PRICE KPIs
Track the right metrics to ensure your pricing strategy is successful.
Having invested the time in setting up pricing strategy, you need to ensure that it is working. Price strategies touch all parts of the organization. The impact, positive or negative, can be hidden. You must launch your new pricing strategy with clarity on the KPIs that will show points of success and failure. How you will calculate, baseline these metrics, and who will provide the underlying data must be defined. Only then can you track performance, and know when corrective measures are required.
1. You have defined KPIs for pricing.
2. You calculate pricing performance metrics on a continued basis (ASP, discount rates, margin, quote prices, win rates, retention rates, etc.).
3. These metrics are calculated at least quarterly.
4. You further segment these metrics by one or more of the following: industry, company size, deal size, region, manager, and seller.
5. There is a single individual or department responsible for collating these metrics.
6. There is a consolidated formal dashboard or report compiled to display all your pricing metrics.
7. Your KPIs are shared among executives and the CEO.
8. These metrics are utilized to inform changes to sales compensation.
9. These metrics are utilized regularly to update your pricing strategy.
10. Corrective actions are put in place to react to negatively trending metrics.
• KPI Assessment
• KPI Identification
• KPI Calculation
• KPI Tracking
• KPI Dashboards
• KPI Operating Manual