Achieve Transformational Change Around All Aspects of Revenue Management
Our pricing strategy consultants transform your capabilities to deliver higher margins – sustainably – without harming your brand or market share. We identify and clarify strategies, and develop new processes, tools, and organization to deliver high ROI with immediate results
Current State Assessment & Roadmap
Our team of experienced consultants conducts a 360-degree assessment of your revenue management capabilities. We identify gaps in industry best practices, develop action plans for “quick-win” opportunities that can be easily implemented, and develop a longer-term transformation roadmap and value proposition. This comprehensive assessment includes the following:
- Stakeholder Interviews
- Customer Interviews
- Data Analysis
- Market Intelligence
Competitive Pricing Study
Market-based pricing requires access to up-to-date competitive price information. Companies often have difficulty collecting this information from the market in a systematic and recurring way, particularly in B2B businesses where transactional price points are not publicly available.
There are many ways to collect and interpret this information with varying degrees of accuracy, effort, and legal considerations.Market Mapping LLC has been conducting this type of research for over 60 years. We understand these issues and complications. Based on your company’s business model, we assess various options, collect market data, evaluate current price positioning, and develop a roadmap to maintain this data going forward.
- Assess & Select Research Methods
- Conduct Research Using Multiple Methods
- Data Cleansing and Transformation.
- Analyze Results
- Develop Sustainable Plan
Market Research & Elasticity Analysis
To price effectively, you must know who the primary decision-makers are in the supply chain that impact your company’s market share, what these decision-makers value, the premiums they will pay for product or service attributes, and price elasticity. After deep research and analysis, we utilize these results to set market positioning strategies and design pricing methodologies. Our proven methods include:
- Market Share Research
- Channel & Consumer Research
- Elasticity Modeling
- Conjoint Research
- Discrete Choice Research
Base Price Strategy & Optimization
Our pricing strategy consultants define base prices as the primary price in a region upon which most other channel- or customer-specific prices are calculated. This could be a suggested list price or some base channel net price that is customary in your industry.
Our typical approach starts with many of our other service offerings, including Current State Assessment, Competitive Pricing Studies, Market Research and Elasticity Analysis. Equipped with a clear understanding of market dynamics, we’re then ready to help you align pricing and business strategy, develop price methodologies, and reprice products or services. Our well-defined methodology for pricing process design includes:
- Product Segmentation Design
- Pricing Methodology Design
- Set Price Positioning Strategies
- Design Price Alignment Rules
- Implement New Pricing Process
- Reprice Products or Services
- Training and Change Management
Targeted Quick Reprice
If you lack the time or budget for a complete pricing transformation but need to drive a quick margin improvement without negatively impacting your business, we offer a “quick hit” targeted reprice solution that leverages the knowledge and analytical skills of our pricing strategy consultants based on available market information. The process typically follows the Current State Assessment and takes an additional 1-2 months to deliver high immediate ROI.
Channel Strategy and Net Price Optimization
Our channel strategy and net price optimization offering is focused on balancing price alignment between customers to prevent channel conflicts and grey market flows while supporting differences that reflect channel contribution and differentiating price associated with buying power.
Your current net pricing position may have evolved over many years, influenced by individual customer negotiations and decisions made over a long history. This often results in a complex situation of millions of potential market price points that result in channel conflicts and lost margins.
Our seasoned pricing strategy consultants employ a time-tested methodology to re-evaluate these decisions, drive transformational change that both rectifies problems and creates guidance, create process controls, and establish KPIs to monitor and control the process over time. Our proven Channel Strategy and Net Price Optimization process includes:
- Current State Assessment
- Customer Segmentation
- Channel Sell-Out Research
- Grey Market Risk Analysis
- Price Control Strategies
- Scenario Modeling and Net Price Optimization
- Communication & Execution Plan
- Sustainability Design & Implementation
Channel Incentive Terms & Conditions Program Design
Most companies selling through channel partners have a mix of expectations for their channel and have established terms and conditions over time to influence the way they do business – to either support the customer or to make the supply chain more efficient. Many companies have not changed these terms over the years, leading to stagnant performance where these money flows become entitlements rather than incentives.
Periodic review and redesign of your incentives is necessary to adapt to a changing market and supply chain environment. Our proven methodology to evaluate and redesign incentives consists of the following activities:
- Assess Current Terms
- Determine Strategic Goals
- Identify the Right Metrics and Rewards
- Design New Terms and Model Impact on Client and Customers
- Socialize with Stakeholders and Customers
- Implement New Terms
Quoting and Deal Management Process Design
Negotiating with customers is difficult. Salespeople are driven to close the deal and generate revenue, while procurers are focused on getting the best price. To prevent margin erosion, you need to arm your sales team with the appropriate tools and escalate deals as appropriate to people with profit and loss responsibilities to drive more profit margin.
Our experienced pricing strategy consultants help you optimize your quoting and deal management processes via support for the following:
- Analyze Deal History
- Customer Lifetime Value Analysis
- Value Product Differentiators
- Monetize Value of Related Services
- Design Deal Grading System and KPIs
- Establish Escalation & Periodic Review Processes
- Train Sales Force and other Stakeholders
Companies often don’t have a clear idea of what they are spending on promotions or how effective these promotions are at driving incremental profit and sustainable growth. In addition, poor coordination between marketing, supply chain, and operations often leads to less-than-desirable business results. There’s a heavy use of push promotions designed to meet short-term revenue goals that often just move demand to different time periods at lower profit margins.
Our pricing strategy consultants have developed a comprehensive data-driven methodology to help improve promotion spending effectiveness and efficiency. This process entails the following:
- Collect, summarize, and analyze current promotion spend
- Segment promotions and determine their objectives
- Evaluate recent historical promotions
- Identify success vs. failure traits & attributes
- Develop rulebook and processes to structure and evaluate future
- promotions, including KPIs
- Support pilot of promotion process including the tracking of results
- Train stakeholders on new processes and rulebook usage
Customer Loyalty Program Design
Implement a new customer loyalty program or optimize your existing programs. We help companies streamline and optimize their customer loyalty programs to influence the right customer behavior. Our experienced pricing strategy consultants possess deep industry expertise, helping you develop bespoke programs that resonate with your customer and drive results. Our proven methodology includes:
- Stakeholder Interviews
- Customer Interviews
- Analyze current loyalty programs
- Customer segmentation
- Program Design
- Scenario Modeling and Recommendations
- Implementation and Communication Plan
Revenue Management Software Selection
Our team of pricing strategy consultants is deeply familiar with all the major revenue management software packages, including Syncron, Zilliant, PTC Servigistics, Vendavo, Pros, Price FX, Vistaar, and others. Many of these solutions evolved in different industries and have strengths suited for that industry and gaps for other business models.
We help clients make sense of the multitude of options to make a better-educated decision. Our holistic approach to revenue management software selection involves these steps:
- Define Requirements
- Prepare RFP
- Identify Potential Vendors & Coordinate Vendor Communication.
- Review, Analyze, & Score Vendor Proposals
- Vendor Demonstration Facilitation
- Finalize Recommendation
Revenue Management Software Implementation
Drawing from 30+ years of price consulting experience, we have modified legacy pricing software for clients, built stand-alone applications, and implemented off-the-shelf software tools. We are familiar with all the off-the-shelf solutions, including Syncron, Zilliant, Pros, PTC Servigistics, Vendavo, PriceFX, etc. We are preferred implementation partners for Syncron and Zilliant, with teams fully knowledgeable and experienced with implementation.
For every project, we always complete a reprice in the targeted area within the software as a mechanism to fully test out the configuration and harvest immediate value for you.
Bring Certainty to Your Decisions. Improve Your Outcomes.
Leverage our uncompromising pursuit of knowledge to drive growth. Our rigorous approach helps you thoroughly understand markets, customers and competitors, uncovering essential intelligence that leads to new ideas and better decisions.
With decades of experience in global consulting, strategy, and M&A support services in key industry sectors, we know what it takes to grow a business. Connect with us to discuss your goals.