Given how dynamic the world of price optimization can be, it’s natural to wonder how your organization stacks up to others facing similar challenges when it comes to pricing strategies.
Recently, Vendavo partnered with Ventana research to conduct an extensive survey of various companies to get to the bottom of where the hive-mind stands on pricing strategies. The survey results led to the discovery of some fascinating trends, as well as important discoveries to keep in mind for your firm’s journey, and were the subject of a recent webinar.
Market Trends for Pricers and Sellers
Here were are some of the trends we found to be impacting pricing strategies:
- Firms from many verticals are seeing increasingly competitive markets
- Buyers are looking for a partner to buy from, not just a vendor
- Customers are demanding diversity in how they buy
- SaaS and subscription models are changing the buying experience
- Not every $ of revenue is the same
- More personas in the buying process, complicating things for sellers
So with these trends in mind, what are the implications for sellers, and the way they approach pricing strategies?
For one thing, the way you approach customer retention must change: Whereas before, a sale implied that the customer was now locked into your ecosystem for years to come, the subscription model forces companies to offer a better user experience, more frequent updates, and to remain competitive on a much shorter time horizon.
What’s more? There’s a rise in multi-channel selling as a reaction to customers demanding new ways to purchase a solution. As explained in a recent webinar from Vendavo and Ventana Research on the subject:
Think online self-service, indirect through a partner, direct through a field organization, or increasingly through inside sales.”
No matter the organization, the sales process is evolving in one way or another, and there’s a need to equip sellers to respond to these new demands
Pricing Strategies Insights
The survey asked some timely questions, and the companies responded with some telling answers. For instance, “Do you give your sales reps autonomy to change pricing?” Firms revealed that:
- Less than 10% allow free autonomy
- A majority have an approval process for discounts
- Under 10% have no review for price changes
Another question revealed almost half of the companies surveyed aren’t confident in rep’s knowledge of pricing, revealing an interesting soft spot in many firms’ pricing strategies and practices.
Indeed, these are important insights to be privy to as a pricing manager, because understanding the challenges facing your competitors can save you from needless trial and error in optimizing your firm’s best practices and pricing strategies.
For more telling insights into the survey results and the pricing strategies that companies are taking, be sure to watch the webinar in its entirety using the link below.