Implementing a pricing project generally requires a major internal transformation. Three key points must be emphasized to ensure the successful implementation of your new pricing solution:
- Define a clear pricing strategy with precise business objectives
- Execute the strategy and make sure you offer the right range of functions
- Implement change management support
Defining the pricing strategy
Implementing a pricing tool usually requires the company to reflect on its pricing strategy. Generally speaking, strategies are limited by the tools used. The opportunity offered by the use of a pricing tool like PricingHUB is not only to cover a wider perimeter, but also to be able to base pricing on data.
It is therefore essential for companies to define their business objectives: maximizing margins, increasing revenues or boosting sales volumes. Whatever the objectives, it’s important to have them clearly defined in order to optimize pricing accordingly.
Executing the pricing strategy
This part is the responsibility of the pricing solution. The solution must be able to meet the requirements and needs of the company’s pricing strategy. In addition, it is also necessary to offer functionalities that enable the tool to be used to best effect, and to improve price optimization over time.
These features can include:
- Price alerts
- Performance reports
- Simulations, etc.
These two missions are essential and central to the success of a pricing project. But they are not enough.
The key to success is Change Management
Change management is often underestimated, as it is less central and tangible than the two previous points. Nevertheless, to ensure a successful transformation, it is vital to consider change management on the same scale of importance. There are three elements that both sides need to take into consideration when managing internal change:
- Identify the key players who can lead the transformation
- Getting all stakeholders to adopt the tool
- Develop new processes adapted to the tool’s use.
The adoption of a pricing tool impacts the internal organization of companies that decide to implement this type of project. Indeed, it generally leads to a profound change of strategy towards a consumer-centric organization, using data as a solid basis for price construction. These changes have an impact on the organization as a whole, so it’s essential to rally everyone around the project.
To ensure that all the tool’s users are on board, you need to identify the leaders who can help you drive the transformation internally. These are the people who will enable you to create momentum internally and instill a training dynamic, for example.
This dynamic will enable you to get the tool adopted by all stakeholders and at all levels. It’s important to bear in mind that the level of detail may vary according to each individual’s function. Different processes can be put in place to facilitate adoption and use of the tool by the different teams involved.
Getting everyone on board is the key to success!
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