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
Customer Journey Map Evaluation Tool
June 7 2019
Customer Journey Map Evaluation Tool
VIEW
Competitive Map Tool
June 7 2019
Competitive Map Tool
VIEW
UX Discussion Planner Tool
June 7 2019
UX Discussion Planner Tool
VIEW
previous
1 of 124
right
Loading...
Pricing Strategy
Gain a Competitive Edge Through a Successful Pricing Strategy
Do you know who your competitors are? What makes them a competitor? Why do buyers choose their product over your own? Buyer perception is everything. By understanding and influencing buyer perception, you can increase the willingness to pay and capture...
Read More
Pricing Strategy
Why Is Versioning so Important to an Effective B2B Pricing Strategy?
If you are a CFO or a PE Firm thinking about buying a company whose product has a low fixed and high variable cost (i.e., software),  this is important to you.  Why, because when you are looking at investments, price...
Read More
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

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