Pricing Actions and Pricing Portfolios

Do you manage pricing actions as a portfolio of choices?

Pricing can be a powerful lever to achieve business results. There are many pricing actions that can be taken. Deciding which actions to take requires an investment of time and money. The risk return profile of pricing actions can also be quite diverse. In situations like this, the best practice is to treat pricing actions as a portfolio.

You can learn more about pricing actions and pricing portfolios here.

In this survey, we are exploring how people build and manage portfolios of pricing actions. If you would like to receive a summary of the results, please share your email with us. We will also share the results on the Ibbaka Market blog and through the Professional Pricing Society's LinkedIn Group. There will be a workshop on building a Pricing Action Portfolio at the Professional Pricing Society's Spring Workshop in Chicago. We will be delighted to see you there. If Covid-19 makes it difficult for people to attend in Chicago, we will also offer this workshop online.

Question Title

* 1. At my organization, pricing is ...

Reactive - we take pricing actions when we have to

Responsive - we listen to customers and competitors and use pricing to position our offer

Strategic - pricing is critical to how we frame and execute our strategy

Ignored - we don't spend a lot of time on pricing

Dynamic - we use AI and other tools to adjust prices in near real time

Performance-based - prices are based on the value we acutally deliver to our customers

Other (please specify)

Question Title

* 2. The last time we took a pricing action was ... (A pricing action is a change to list price, packaging, discounting, the pricing metric, enforcement or any other action you take that impacts the price paid by a customer and what they pay for.)

Today

This Week

This Month

This Quarter

This Year

What, take a pricing action! Not part of our culture.

Other (please specify)

Question Title

* 3. We are currently investigating the following pricing actions.

List Price Increase

List Price Decrease

Change to packages

Change to tiered offer design

Change to discounting or discount bands

Pricing campaign (a temporary campaign that impacts pricing)

Change to pricing metric

Data collection (for data that will impact future pricing actions)

Ongoing dynamic pricing

Experiment with dynamic pricing

Ongoing performance or outcome based pricing

Exploration of performance or outcome based pricing

Other (please specify)

Question Title

* 4. How long does it take to make a change to list prices

Seconds

Hours

A day

A week

A month

A quarter

A year

Other (please specify)

Question Title

* 5. What data is collected before a price change?

CRM data is analyzed

Customer support and customer success data is analyzed

Usage metrics are analyzed

Value metrics are analyzed (value to customer)

Profitability studies and analysis

Pricing dispersion and segmentation studies are carried out

Market research on value drivers (interviews and surveys)

Market research on competitors

Direct pricing studies are carried out (such as Conjoint analysis, Gabor Granger, etc.)

Field or ethnographic studies

Other (please specify)

Question Title

* 6. What data is collected after a price change?

Pipeline metrics (entry, conversion ratios, velocity)

Up sell, cross sell and renewals

Usage metrics

Customer satisfaction

Net Promoter Score

Market acceptance

Competitor responses

Changes to segmentation and value driver analysis

Changes to price dispersion

ROI on the pricing actions

Pricing action impact on Value to Customer

Pricing action impact on Lifetime Customer Value

Question Title

* 7. We manage pricing actions ...

As one off actions with each action considered independent of others

As a system, analyzing how each action could impact the others

As a portfolio, investing in and making choices based on the investment, risk, return and time frame

Other (please specify)

Question Title

* 8. Budgets for pricing actions and pricing portfolio management ...

Do not exist

Are managed on an as needed basis and do not have their own budget line

Are buried in marketing budgets

Have their own annual budget

Have their own multiyear budget managed based on the return on pricing actions

Other (please specify)

Question Title

* 9. The primary place we manage pricing is ...

Centrally by product marketing

Centrally by finance

Centrally by sales

Centrally by a specialized pricing function

Regionally or locally by product marketing

Regionally or locally by finance

Regionally or locally by sales

Regionally or locally by pricing specialists

All of the above

Other (please specify)

Question Title

* 10. If you are interested in following Ibbaka's work pricing and the pricing action workshop, please provide your contact information. (You can unsubscribe at any time. We do not share this data)

Name

Country

Email Address