PHASE 6: REVENUE MODEL

Align your pricing model with the value your customers expect to gain from your products.

 

Choosing revenue models that align with buyer preferences will increase your ability to win. More than any other part of pricing, your revenue model is the way you communicate to your customers exactly what they are purchasing. And what they are purchasing should align to the way that they receive value from your product. Use an outward-in approach to define value from your customer’s point of view as opposed to an inward-out cost approach. Choosing a revenue model that is in alignment with customer value will expedite your sales significantly. Developing and innovative new revenue model will make you the industry disruptor.

Rapid Diagnostic

1. You have defined which revenue model you and your competitors use (i.e. Perpetual ownership, Software (upfront fee + maintenance), Rental, SaaS, Variable, Pay as You Go, 2-part Tariff (fixed fee + variable component), Auction, Freemium, Fixed ROI (pay a portion of the value delivered)).

2. You have quantified how frequently your customers consume your product.

3. You are aware and have documented the revenue model of each competitor in each market.

4. Your customers tolerable of unexpected costs.

5. Recurring revenue streams are critical to your business.

6. You have determined what type of budget your clients use to pay for your product. (CapEx, OpEx)

7. You are aware of how buyers prefer to pay (lump sum, reoccurring, per transaction).

8. Your buyers are willing to pay an adjustable fee depending on the value they receive over time.

9. Your revenue model aligns with your business objectives.

10. Your revenue model is disruptive in the market.

Deliverables

• Revenue Model Analysis

• Competitor Revenue Models

• Revenue Model Options

• Revenue Model Evaluation Criteria

• Revenue Model Scoring

INDUSTRY
STRATEGY AREA
CONTENT TYPE
Trade Show Checklist Tool
April 23 2019
Trade Show Checklist Tool
VIEW
Willingness to Pay vs Customer Experience Tool
April 22 2019
Willingness to Pay vs Customer Experience Tool
VIEW
Case Study: Activating the Product Function
April 17 2019
Case Study: Activating the Product Function
VIEW
previous
1 of 118
right
Loading...
Go-To-Market Strategy
The Link Between Pricing and Customer Experience
Wondering what is the next emerging best practice in Customer Experience? Monetizing service.  This is in addition the typical Customer Experience benefits of decreased churn and higher cross-sell/ upsell.   Listen to how a sales leader leverages Customer Experience.   Stay Ahead of the...
Read More
Pricing Strategy
Aligning Your Sales Team to Your Pricing Strategy
Start with Why, a book written by Simon Senik, touts that you can inspire action by getting people to buy into your purpose.  The ‘why’ discussed in the book is philosophical in nature yet has practical application.  He explains why...
Read More
Pricing Strategy
SBI's March 2019 Pricing Newsletter
Winning Pricing Strategies for a Mature Business Have you tried multiple times to roll out price increases, only to find single-digit execution rates? Do leaders and sales reps justify the lack of adoption of pricing changes to fear their clients will...
Read More
Pricing Strategy
Has Your Deal Desk Become a Collision Center? – 5 Steps to Clean up the Dysfunction
As organizations transform their Deal Desk to a best in class Revenue Desk, challenges arise. Making this transition calls for new members from various functions, which results in more opinions and at times, competing priorities. When done well, this leads...
Read More

Stay up to date with our latest insights, benchmarks, strategies & more

CREATE AN ACCOUNT

Join our team of passionate professionals and find your full potential

ALL OPEN POSITIONS