High performing companies are precise about every feature of a product or bundle of products; if it adds to unit costs, there should be a value to the customer. But customers don’t design the products; often they don’t know what they want until they see it.
Setting price, and setting a system to dynamically manage price is increasingly complex. Companies need to account for inputs such as competitor pricing, impact on brand perception, loyalty, cross-sell potential, and profitability, not to mention the tie-in to a prioritized group of segments and micro-segments within them.
What we do
- We start with a review of the market and our client’s strategy to determine the role that the product plays therein:
- Which customer segment are we aiming to serve?
- What problem are we solving for them?
- How does this product fit in?
- How important is price in their decision making?
In a B2C business
- We leverage a range of market research applications to gain precision on customers’ product and price sensitivities. Tools such as conjoint analysis, discrete choice, Van Westendorp analysis, simulations and MaxDiff can each be applied depending on the question
- We meld art and science when writing pricing surveys to put the consumer in the most realistic decision-making scenario
- We create customer or product line profitability models to provide our clients the optimal solution from our survey results
In a B2B business
- We use qualitative interviews, desktop research and focus groups to get a nuanced view of how clients perceive price, what role it plays and how much room there is to move
In all scenarios
- We work with our clients to develop detailed testing programs to evaluate if product and pricing changes have hit the mark
Contact us to get started.
- Product line profitability
- Competitive benchmarking
- Customer profitability analysis
- Category planning
- Conjoint analysis
- Market simulation