GETTING YOUR CUSTOMER PRICING RIGHT
GETTING YOUR CUSTOMER PRICING RIGHT: HOW TO REWARD TOP CUSTOMERS AND PENALIZE CHERRY-PICKERS
(level 300, B2B Themed)
Tuesday Workshop #4 – October 23rd
The tough current economic environment makes identifying revenue and margin growth opportunities difficult. As a result, many companies experience declining volumes and margin pressure. To counter, most companies try to maintain volume by lowering prices and improving cost recovery instead of focusing on
top line growth. Yet, it is hard to find a company which doesn’t have several kinds of customers: from the loyal, well-performing customers down to the unfavorable cherry-pickers.
All companies strive to better understand these customer differentials and ultimately turn that into a growth and profit strategy. Finding the right approach to measure customer performance and creating a link between performance and pricing sounds easy. 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 and require numerous additional manual discounts to adjust. In this session, attendees will learn how “best-in class” companies handle and monetize this opportunity.
Attendees will learn:
How to develop a pragmatic concept for a performance oriented customer value segmentation
How to connect and relate customer value tiers to pricing (price levels, discounts, rebates)
How to monitor and manage changing customer performance to steadily increase value-add
HENDRIK VON DER BRELIE
Director, Simon-Kucher & Partners
Senior Consultant, Simon-Kucher & Partners