Price Optimization

Seven success factors that greatly affect level of acceptance for price adjustments

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

Authors: Carl-Adam Wåhlstedt & Milosz Tersmeden


Price Optimization

1) Power of data – Use data analysis for new insights and to balance inherent intuition

2) Mitigate risk – Understand risks and mitigate potential negative effects, pilot before full roll out

3) Timing – Use timing triggers to increase acceptance rate of commercial changes

4) Rationale – Be proactive and ensure that commercial changes “make sense” for the customer

5) Psychology – Educate on common psychological pitfalls to break old habits

6) Guidance driven by experience and results – Use a fact-based approach to anchor initiatives and inspire the organization by introducing success stories to show “it is possible”

7) Work together – Gain trust, share common pitfalls from real life cases and share the pricing optimization tool box

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