What are the best practices and tools for conducting pricing research and analysis remotely?

Thank you for inviting me to contribute to this article. How do you gather empirical data for pricing research in online contexts? (1) TRAFFIC SPLIT is the standard method for A/B tests that assigns visitors to either the control or treatment group and tracks the session ID to ensure a consistent assignment. (2) FLIPPING removes the risk that two customers see different treatments (e.g., prices) at the same time and develop unfairness perceptions. For all customers, the control and treatment conditions change back and forth in short time intervals to control for confounding factors. (3) QUASI-EXPERIMENTAL DESIGNS (statistically) remove all influences on the outcome besides the treatment to "carve out" the effect of the pricing treatment.

Pricing research helps to determine the sweet spot between maximizing profit and attracting customers. This research goes beyond simply finding a number; it delves into customer psychology, competitor strategies, and market trends. It uncovers what customers are willing to pay, ensuring your pricing aligns with their perception of value. Through surveys and focus groups, businesses can gauge customer sensitivity to price fluctuations and understand the value proposition that justifies a particular price tag. Ultimately, effective pricing research empowers businesses to make informed decisions about pricing models, promotions, and price adjustments over time.

Pricing spans beyond just the price charged. Understanding the metrics around your current offering: most popular price point, customer pain points, most common contract duration, perceived value … and more … are all valuable foundational data as you do your market research and craft new pricing. It incorporates value, perceived value, competitors positioning, trends as well as internal factors like marketing collateral, delivery pipeline, efficiency and more. Having a strong sense of these components will better equip you to set an effective price.

Remote pricing research involves collecting and interpreting data from customers to assess their perceived value and willingness to pay for products or services. These include the use of online survey platforms, the use of incentives to increase engagement, and the use of web scraping tools for competitive analysis. Qualitative insights from virtual focus groups complement quantitative data to help understand customer behaviors. Ethical considerations and compliance with data protection regulations are paramount throughout the research process. By following these best practices, organizations can optimize pricing strategies, increase competitiveness and maximize profitability.

Best practices for conducting remote pricing research and analysis include leveraging online survey platforms to gather customer feedback, utilizing web scraping tools to monitor competitors' pricing strategies, employing data analytics software to analyze market trends and customer behavior, and conducting virtual focus groups or interviews to gain insights into pricing preferences. Additionally, using collaboration tools like video conferencing and cloud-based document sharing facilitates team discussions and decision-making. Regularly updating and refining pricing models based on the findings ensures competitiveness and profitability in remote environments.

Pricing analysis assesses the impact of pricing on revenue, profit and customer satisfaction. The challenges of remote analytics include data access and communication. To overcome these, cloud platforms and visualisation tools help manage and present data. Methods such as cost-based and value-based analysis are essential. Scenario planning and simulation tools effectively test pricing options. Understanding customer value perceptions and the alternatives considered drives powerful pricing strategies. Accurate data aligns solutions with customer needs, increasing competitiveness.

B2B software buyers aren't just focused on price tag – they evaluate value based on how your solution solves their specific pain points. That's why your pricing research needs to go beyond simple willingness-to-pay surveys. Dig deeper to understand how customers quantify value, what alternatives they're considering, and how much those business problems are costing them. This kind of granular data is what builds a truly powerful pricing strategy.

In my opinion, pricing analysis is critical for turning research data into actionable insights. — Price Elasticity Analysis: Assess how changes in price might impact demand for your product using online analytics tools. — Conjoint Analysis: Use specialized software to determine the value customers place on different product features and how those influence their willingness to pay. — Break-Even Analysis: Calculate the price point at which your product will start generating profit by considering fixed and variable costs. — What I have usually seen is that effective analysis requires combining quantitative and qualitative data. Tools that offer data visualization can help you interpret complex pricing data more easily.

In looking at pricing analysis, one important component is the organization's strategic objective. Is it to increase volume, increase profits, increase customer base, price perception, something else? A combination? This allows us to then look at costs for minimum pricing requirements and then set price based on willingness to pay against their strategic objective.

Improper or non-validated assumptions are the biggest shortcomings in pricing analysis. Take for example cost based analysis. If purchase department overpaid for a keyraw material, but the current prevailing rates for the raw material is significantly lower; in such cases, computing contribution margins for breakeven analysis based on actual purchase price (and not the market prevailing prices), will lead you to overcharge in order to maintain a fair markup. You may not be able to sustain volumes, which would lead to further escalations in cost and your business will be headed towards a slow and certain DEATH!

Pricing research vs pricing analysis: Pricing research and pricing analysis go hand in hand, especially when looking at a potential change to your pricing strategy. Conducting research should not be limited to pricing but also the quality and value of competitive products. Everyone has their unique niche and understanding the intersectionality of price, value, breadth, speed (and any factors suitable to your business) not only provides litmus test for your proposed changes but can also help frame your future product pipeline. Analyze, research, analyze …. Its an evolutionary process.

Pricing research focuses on understanding customer perspectives and values, using qualitative and quantitative methods alongside external data to set or change prices. In contrast, pricing analysis evaluates business performance after price implementation, using internal data and quantitative methods. Integrating the two processes is essential to creating a balanced pricing strategy that is aligned with market dynamics and organizational goals. By understanding customer preferences and assessing business outcomes, companies can ensure that their pricing decisions optimize profitability and customer satisfaction. This synergy between research and analysis enables informed adjustments that resonate with both customers and business objectives.

Pricing research and pricing analysis focus on different use cases or objectives. Pricing research is about price discovery, while pricing analysis is about gaining insights into the business data to figure out if you need a price change and how much. Businesses need a healthy mix of both, maybe in different proportions based on the lifestage your business and product are in. In the early stages, you need to conduct research, and build proxy data to understand custoemr preferences and behaviours; basically estimate how they are likely to respond to your pricing actuions. When you have a sufficent business data, your pricing analytics will tell you whether or not your pricing needs a change based on how well your customers are receiving it.

And how does AI impact the pricing research vs. pricing analysis equation? #Lisa Nelson raises a good point that both go hand in hand. In addition, AI will likely increase the intensity & opportunity of doing both activities. If AI enables us to get insights we would otherwise not have seen (and that is just one of a long list of benefits), then pricing research will only be enriched with the application of AI. Similarly, pricing analysis will only become easier, faster, cheaper and better with the advent of AI. AI will therefore allow for both better, research-enabled, pricing strategies and for more agile, analysis-enabled, pricing tactics. The result; an earlier, better and more optimal pricing over time.

I believe that understanding the difference between pricing research and pricing analysis is essential. — Pricing Research: Focuses on gathering data from customers, competitors, and the market to understand pricing dynamics. — Pricing Analysis: Involves interpreting the data collected during research to develop actionable pricing strategies. — In my experience, both are crucial and should be conducted in tandem. Pricing research informs pricing analysis, which then guides your pricing strategy decisions.

Pricing Software as a Service (SaaS) is challenging due to fluctuating perceptions of value, selecting appropriate pricing models, and developing effective monetization strategies. In addition, competition requires strategic positioning while ensuring profitability. Flexibility is essential to meet changing market needs and growth paths, while balancing acquisition costs and long-term customer value is critical for sustainable growth. In addition, tracking and analyzing metrics such as customer acquisition cost (CAC) and churn rates adds complexity to pricing decisions. Successful SaaS pricing requires a data-driven, customer-centric approach that fosters adaptability and continuous refinement to maximize revenue and remain competitive.

In my opinion, these additional considerations can enhance your remote pricing research and analysis: — Collaboration Tools: Use cloud-based platforms for team collaboration, enabling real-time data sharing and joint analysis even when working remotely. — Automation: Consider tools that automate data collection and analysis processes, saving time and reducing errors. — Scenario Planning: Use scenario analysis tools to explore the potential impact of different pricing strategies under various market conditions. — Continuous Monitoring: Pricing is not a one-time activity. Continuously monitor market trends and adjust your pricing strategies as needed to stay competitive.

I would say that empathy is super important on top of your pricing research and analysis - especially as collective intelligence has been proved as an effective approach

I realize that the key to success lies in the systematic approach and the adaptability to remote work environments. It’s essential to maintain a disciplined routine, ensuring regular data updates and consistent analysis. Collaboration tools like Slack or Microsoft Teams facilitate seamless communication with team members, making sure everyone is aligned despite the physical distance. Moreover, the ability to adapt and leverage remote working tools enhances efficiency and productivity. It emphasizes the importance of staying updated with technological advancements to maintain a competitive edge. Regular training on new tools and methodologies also ensures the team remains proficient and agile.

I've realized that remote work necessitates a high level of discipline and adaptability. Regularly updating our tools and methodologies is crucial, as is fostering strong communication channels within our team to share findings and insights effectively. The distinction between price research and price analysis is vital: research involves gathering data on competitors and market conditions, while analysis focuses on interpreting this data to make informed pricing decisions. This approach not only enhances our strategic capabilities but also empowers us to respond swiftly to market changes, ultimately supporting our goal of maximizing revenue while maintaining customer satisfaction.