What do you do if your pricing strategy is not attracting customers in Sales Operations?

Understanding your customer base is critical because different pricing strategies support different goals. Increasing your market share can be achieved with freemium, penetrative pricing, price skimming, and competitive pricing; maximizing revenue can occur with value-based, dynamic, and psychological pricing. Assess what your current pricing strategy is. If there is none, then move on to understand the revenue goals of the business. Afterwards, build a persona of your customer base. While there are countless personas, some common types may fall within groups of demographic-, psychological-, behavior-, or needs-based personas. With goals and personas in hand, begin hypothesizing how different strategies may affect different market segments.

If the pricing strategy is not attracting customers in Sales Operations, I would conduct market research to understand competitors' pricing strategies, gather customer feedback to identify pricing preferences and pain points, analyze the value proposition to ensure alignment with customer needs, and consider adjusting pricing tiers, discounts, or promotional offers to better meet market demands and enhance customer attraction.

Understanding your customer base is critical because different pricing strategies support different goals. Increasing your market share can be achieved with freemium, penetrative pricing, price skimming, and competitive pricing; maximizing revenue can occur with value-based, dynamic, and psychological pricing. Assess what your current pricing strategy is. If there is none, then move on to understand the revenue goals of the business. Afterwards, build a persona of your customer base. While there are countless personas, some common types may fall within groups of demographic-, psychological-, behavior-, or needs-based personas. With goals and personas in hand, begin hypothesizing how different strategies may affect different market segments.

Exploring trends in pricing data is critical. Look within the major facets of Sales Operations: customer feedback, actual sales, and marketing data. Look at trends between timing, win/loss ratios, sales by product segments, etc.; also consider inter-market forces such as competitor activity, macroeconomic trends, and public opinions. Excel is the sandbox software that enables the most freedom when exploring the data. Before starting your analysis, take time to grasp the quality of the data. Depending on how messy, it may take significant cleaning before analysis should begin.

Testing pricing strategies cannot begin without having a well-structured hypothesis. Don't over-engineer it. A simple IF, THEN will suffice. When assessing variables, you can test a single or multiple variables. Single variable tests include A/B testing (assessing two versions to determine superiority) and price-point testing (assessing different price points for identical items). Some multivariable tests include conjoint analysis (assessing preferences between different product/service bundles) or full-factorial designs (where all combination of variables are sampled for response rates). Whatever strategy is implemented, understand the recommended sample sizes. Correlation does not always imply causation, especially with a low sample size.