Strategic Pricing is gaining strong attention in European executive boardrooms, especially among industry leaders and “top 3” players seeking to enhance their bottom lines and gain competitive advantage by upgrading or replacing obsolete pricing models.
European organizations have realized that Strategic Pricing offers benefits that are hard to find elsewhere, such as superior ROI compared to other business improvement options, low investment risk and a short time to realize benefits.
There is a growing performance gap between organizations that strive to improve their pricing processes and those satisfied with their existing status quo.
With plans for investments in Strategic Pricing clearly in favor of current top performers seeking to expand their market lead, the future can be extremely challenging for organizations that neglect this critical business area.
Organizations should take a holistic approach to planning and implementing a sound Strategic Pricing Model. Based on the analysis of survey results, it is apparent that successful Strategic Pricing is not a short-term project, but rather a multiple-step program—involving products, pricing strategies and tactics, people and process—which is enabled by information technology and change management.
Organizations should follow a comprehensive execution strategy based on Six Sigma methodology with pricing performance benchmarks and metrics to implement, monitor and continually refine their Strategic Pricing Model. To this end, third-party expertise can provide unbiased opinions, insights and direction on how best to achieve the most effective result
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