Getting Your Customer Pricing Right

Getting Your Customer Pricing Right

Getting Your Customer Pricing Right: How to Reward Top Customers and Penalize Cherry-Pickers

The current economic environment makes identifying revenue and margin growth opportunities difficult, with many companies experiencing declining volumes and margin pressures. To counter, most try to maintain volume by lowering prices and improving cost recovery instead of focusing on top-line growth. They strive to better understand their varying customer groups and turn that understanding into a growth strategy, yet most recent research shows that more than 83% of all small and medium sized B2B companies still price based on gut feeling, cost-plus calculation and competitive price levels, requiring numerous manual discounts to adjust.

Learn how “best-in-class companies” handle and monetize this opportunity. They combine market intelligence, transactional data and customer feedback to measure customer performance based on reliable data. They map this aggregated customer value against price levels in a defined pattern. Finally, they define rules of engagement and have the right communication strategy in place to keep this model in balance while still allowing customers to improve at over time.

Wednesday Workshop 8 (May 2nd)
Level 300 Workshop

Attendees will learn:

  • To develop a pragmatic concept for a performance oriented customer value segmentation

  • To connect and relate customer value tiers to pricing (price levels, discounts, rebates)

  • To monitor and manage changing customer performance to steadily increase value-add

Hendril von der Brelie

Director, Simon-Kucher & Partners

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William Lee

Consultant, Simon-Kucher & Partners

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