Pricing Optimization
CMG’s Stephen McPhail discusses a personalized approach to strategic pricing
Maximizing revenue requires more than just setting a price tag. Strategic pricing requires understanding customer values and aligning offerings accordingly. The process starts with establishing a fact base through qualitative and quantitative research, identifying products, segments, and revenue sources. CMG develops pricing hypotheses based on customer motivations, utilizing qualitative research. These hypotheses undergo quantitative validation through Discrete Choice Modeling, ensuring pricing decisions align with customer preferences. Detailed financial analysis and modeling incorporate validated scenarios, considering factors like loading and cross-selling, yielding revenue-optimized solutions aligned with strategic goals over one, three, and five years.
CMG's Unique Approach: One size doesn't fit all in strategic pricing. CMG stands out by combining qualitative and quantitative research with financial analysis. This approach tailors individualized strategies, including:
Opportunity Analysis: Determining the size and value of new markets, opportunities, and value segments.
Customer Segmentation: Identifying investment and targeting priorities.
Product Roadmap: Addressing unmet needs for prioritized segments to achieve faster time to revenue
Pricing Optimization: Offering unique recommendations for each customer.
Go-To-Market: Improving speed and revenue through strategic implementation.
Transformation through strategic pricing is not a one-time event but an ongoing process of adaptation and refinement. CMG helps organizations unlock their true revenue potential and achieve sustained success in the competitive market by understanding customer values, aligning offerings, and leveraging a unique blend of research and analysis.
