We help our clients analyze and launch high priority initiatives to maximize revenue and profitability in their existing business. Offer your customers the right product in the right medium at a price that optimizes the long-term profitability.
In essence, all purchase decisions are in some way affected by the price, some to a greater extent than others. Price optimization takes place in several stages, from strategy and model to level and control, and is based upon an understanding for customer segments, price elasticity and price sensitivity. Axholmen has experience of all stages, and from working with both traditional and value-based pricing models.
Price Optimization – seven success factors that greatly affect level of acceptance for price adjustments
In a surrounding world affected by ever changing customer preferences and high demand for individualization, the ability to offer the right product, at the right place, at the right time becomes more important. Through data-driven customer segmentation and understanding of what products and presentations create real customer value, we can focus on putting efforts where they have the greatest impact. Axholmen can assist in the development and implementation of an integrated approach for a go-to-market strategy, thus creating the conditions for profitability, new revenue streams and ongoing competitive advantages.
Product and customer profitability
Axholmen has long experience from working with the understanding of true product and customer profitability, and we help our clients identify and realize the best actions based on that insight. Great results can be achieved through minor improvements in for example conversion rate, churn or average sales per customer. With innovative product offering there is a chance of increased revenue and profit opportunities, for example by product-as-a-service, subscription solutions and so forth. Understanding customer categories based on revenue and cost-to-serve enables targeted action, from price negotiations to more extensive value-creating additional services.
For many companies, a majority of revenue comes from the existing customer base in the form of ongoing agreements or new business from existing customers. Price adjustments or a transition to a new commercial model can be very important value adders – we share seven success factors that we believe affect the level of acceptance to a high degree regardless of industry and geography
Axholmen has extensive experience from commercial optimization within B2B, B2C and B2G in EMEA, North America, and APAC. In this White Paper we share key insights that have helped our clients to reach substantial results using pricing optimization as a lever. Based on our experience, we describe four main areas (A-D) to succeed with price optimization.