Set strategic pricing and sales models
Strategic pricing and sales models are executive decisions around how best to price products (e.g., demand-based, cost-based or competition-based) and how to select between options such as SaaS and channel marketing strategy.
To set effective pricing and sales models, define the goals of the business, establish who your customers are, determine how they will use the products and services, and know the pricing and sales models of your competitors. It’s also important to outline and clarify the various types of strategic pricing strategies available, such as penetration, premium, tier, value, sandwich and competitive pricing.
Align your strategic pricing and sales models with buyer behaviors and demands
Setting pricing and sales models is not an isolated exercise. Product managers should collaborate closely with product marketing, the chief financial officer and sales colleagues to effectively set up their models.
Take action: Align your strategic pricing and sales models with buyer behaviors and demands, and use market intelligence to counter competitor pricing strategies.
Build customer experience into product development
To improve product development and differentiation, focus on customer experiences, business models, repeatable service models, associated services and go-to-market strategies, not just technical features. Look inside and outside the company for customer insights. Externally, develop continuous channels of communications and interactions with customers to effectively capture their requirements and feedback.
Internally, invite new ideas and ways to develop customer experiences from cross-functional stakeholders and teams within the company.
Take action: Adopt a design-thinking approach to build customer experience into product development — creating business-focused outcomes that generate transformative, innovative and strategic change.