How do you foster a culture of pricing and revenue management excellence in your organization?

Welcome, fellow PRM adventurers! ???? Our first quest in crafting a culture of PRM excellence is to unravel the mysteries of our unique value proposition. It's like discovering a secret treasure map that leads us to PRM paradise! ????? Ask yourself, what makes your products or services stand out like a fabulous unicorn in a sea of ordinary horses? ???? Are they magically innovative? Do they possess the power to transform your customers' lives? Once you've identified the enchanting qualities that make your offerings irresistible, it's time to shout it from the rooftops! ??, captivating your audience with mesmerizing storytelling. Keep a keen eye on your value delivery with magical tools like surveys and social listening ????♀?.

Pricing is truly a science. As many retailers will tell you management of your inventory is also a crucial component. Often people try to force a price before establishing value. People won’t not buy a product due to price provided you have established a perception of value

Too often we rely on cost plus pricing (determine the cost of doing what we do and adding margin to arrive at a price.) in this environment we need to do price-based costing: determine a target price based on what the customer thinks is fair given your value-proposition, then subtract your margin to arrive at a target cost. Then review those costa to see where the appear out of line. This will not only tell you whether your value proposition offers good value but will also identify areas where technology and other productivity directed efforts should be targeted

For me, this comes first. A true value proposition starts with actually knowing what the actual value of your offering is, not what you "think" it might be. If you lead with the customer first, you can drive a stronger value and sometimes even avoid the pricing discussion altogether. Additionally it adds to the effectiveness of ICP creation as well. It's the difference between an ACP (Assumed Customer Persona) and an ICP (Ideal Customer Persona) ... and value/pricing is a huge component.

This is still the biggest pitfall the product and service providers make. They design a website, ads, and pricing purely based on their perspectives. This is completely backwards. Everything you do has to be through the eyes of your core customers. Think as they think when they start their customer journey and continue moving them along through their eyes. You will quickly see the massive uptick in conversions.

These are great ideas that marketers have long recognized (and proven) as effective. But too often our technology made specialliztion expensive and so we fall back into a one size fits all approach: we treat everyone the same because it sounds “fair” and the economics of scale says standardization is the pathway to cost reduction.

Yes it would be great if we always get things perfect out the gate but fortunately we have easy ways to measure the customer’s reactions and how we keep them or where we lose them. Keep adjusting perpetually. Eventually you will fully optimize your messaging to correct where and why you lost a sale.

Data is the best way to highlight where pricing and revenue management need to improve. Set up minimum margin thresholds and identify both low-margin products and low-margin customers to focus these efforts.

Within our organization we have the greatest assets. Our own co-workers are a wealth of knowledge and our best salespeople can share with your marketing team how they close deals. Use this valuable information to design your modeling in store and online.

Quite often goals & objectives contradict themselves. Sales goals (bonus, etc) may be set up to encourage top-line sales growth, while marketing is trying to maximize pricing (while ops are focusing on reducing costs). Get everyone on the same page with respect to strategy and their role(s) in maximizing profitability.

Collaboration is so 2000's. Let's build cross-functional ALIGNMENT. Not just to organizational visions and mission but between teams. Understanding and commitment are too passive for such an important process. It needs to be a 100% defined and documented alignment of these activities.

Very few people achieve greatness by following the easy road. Utilize creative approaches in your testing and you may uncover your genie in the bottle.

The thing about being educated is that skills based knowledge is constantly changing. That means education has to be an ongoing part of your company culture.

Great companies or entrepreneurs are constantly chasing optimal performance. Whatever your business you need to continue to grow primarily in your understanding of your customers. Make that the hallmark of your culture.

To echo what Alan Gold shares, the first sale is to yourself. As a salesperson you have to see the value, worth and use case for the product/service. Until that occurs, sales success will be hard to achieve. Once that is done, the sales transaction is (in part) the transfer of enthusiasm from the seller to the buyer for the product/service.

In my experience there is an additional dimension that aligns with education, but is focused on ensuring that your customer-facing teams actually believe in the company and the product. I know that sounds like it should be self-evident, but it's not! Prospects can sense BS or lack of conviction in seconds; if your sellers don't believe in the value of your offerings, all the rote training in the world isn't going to get a deal over the top. Buyers want to feel good about what they buy--sometimes their jobs and careers actually depend on getting it right--so making sure that everyone really "gets it" as well as understanding the mechanics and the metrics of the pricing model can be a difference maker.