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Stra­tegic Pricing

We help optimize your pricing to support your commercial strategy and achieve profitable growth.

A well-defined pricing strategy drives revenue and customer satisfaction

Your pricing strategy and how you execute it has a direct impact on your bottom line. Grow your revenue and increase your customer satisfaction by taking a strategic approach to optimizing your pricing.

Capacent has helped companies across different industries develop new pricing models for their core and ancillary product or service offerings. We ensure transparent and efficient pricing processes are in place to minimize price leakage so your company does not lose out on revenue.

”Capacent did a good job analyzing the dynamics of the market and getting the team committed. Practical advice and a can-do mentality was crucial for success.”

Christoffer Landtman, CEO, Havator

Read Havator's case

Build a roadmap to pricing excellence

Ensure your offering is both compelling and competitive

We can help you understand the underlying needs of your customer segments and create compelling value propositions to your customers. We have helped clients re-design their product / service offerings to offer more value to customers, generating profitable growth for our clients. Sometimes this means simplifying the offering to make it easier to communicate the benefits to potential customers, or restructuring price lists and discounting frameworks to better match different customer segments.

We have also helped our customers innovate new service concepts. Through well-designed concept tests we have enabled the client to get an understanding of the attractiveness of the concept ideas, and an estimate of the optimal price range and pricing model to help develop a business case for the new concepts – and choose the ideas with the most potential for piloting.

roadmap to pricing excellence

Add transparency to your pricing processes

Pricing requires a persistent end-to-end approach: strategic price setting, clearly defined roles and responsibilities, sufficient tools and systems, governance and a flexible, future-oriented mindset.

Capacent can identify bottlenecks and sources of price leakage in your existing process and create an actionable roadmap to streamline the process and block the leakages. It is necessary to bring to light the impact of both the on- and off-invoice discounts in order to get a holistic picture of profitability improvement potential. Our customers have also benefitted from the enhanced pricing analytics and reports Capacent has created by structuring and visualizing complex datasets on for example product and customer profitability.

roadmap to pricing excellence

Be proactive and take the first steps

Our recommendation is to begin with a thorough Current-state Analysis of transactional data, interviews with key internal stakeholders and end customers. The aim is to get a fact-based view into your business, the pricing process, potential sources of price leakage and areas for improvement. Our team can usually get this done in a time frame of 4-6 weeks. We then present the results to our client in a workshop and together form a development roadmap: where do we see the most potential, and how complex and time-consuming are the issues to resolve / develop? How should the initiatives be prioritized? Where are the quick wins?

roadmap to pricing excellence

Key benefits of taking a strategic approach to pricing
  • Reach your strategic targets: pricing decisions are key to growing market share, revenue, improving profit margins, or in gaining entry to new markets or market segments
  • Increase customer satisfaction: well-defined offerings with logical pricing make it easier for the customers to choose the most suitable option for their needs
  • Enhance customer lifetime value: pricing decisions can have a big impact on customer loyalty and reducing churn
  • Increase employee satisfaction: logical pricing makes your offering easier to sell and deliver
  • Less confusion and reduce the cost of sales: clear processes, mandates and supporting tools help your sales organization defend your price levels
  • Strengthen your brand: price is often an important element in your brand image – make sure your pricing supports your brand and doesn’t work against i
Key focus areas within our strategic pricing offering

Some specific example areas where we can help you:

  • Assessing and stopping price leakages due to e.g. dysfunctional price structures, processes and governance
  • Defining and developing pricing strategies for your core and ancillary offering
  • Gaining and understanding of the underlying needs of different customer segments and estimating their willingness to pay
  • Designing competitive pricing models including setting list prices, discounting structures and policies across multiple sales channels / countries / customer segments
  • Enhancing the pricing competencies – the skills, knowledge and attitudes – your organization needs to be successful both today and in the future

How we work with you - From a business case to measured sustainable results

Step 1: Current-state Analysis
  • Current-state assessment through quantitative and qualitative analysis
  • Identification of performance gaps and improvement areas
  • Sizing of the opportunities: potential vs. complexity to implement
  • Need for change
  • High-level roadmap for execution

Result: Common understanding of the challenges and potential development initiatives – does a business case exist or not?

Step 2: Plan
  • Detailed planning per stream (or backlog for sprints)
  • Finalize scope, targets and performance metrics
  • Project team members and roles
  • Project story & people-oriented change plan

 

Result: Detailed deployment plan (activities, timeline, resources)

Step 3: Create and execute
  • Create concepts / models / processes / policies / tools according to agreed scope
  • Design pilots and refine
  • Weekly project & change management with individual coaching
  • Transparent progress tracking & active red-flagging of challenges
  • Training

Result: Targets reached, competencies of the organization strengthened

Step 4: Governance and sustain
  • Fully implemented governance and monitoring models in place
  • Plan for continuous development in place to secure sustainable results
  • Case-by-case support based on need

 

Result: Governance and monitoring in place to enable further improvements as required

Request a meeting

Should we discuss how you could optimize your pricing and achieve profitable growth? Request a meeting and let’s find out together!

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