The most valuable insights come when data from different sources in combined in new ways. This is especially true of pricing. Pricing was once the domain of inward looking technical geeks, who would pour over transactional data trying to infer willingness to pay (WTP), find pockets of customers who were overpaying or underpaying, and then tweak pricing parameters in an effort to optimize prices. This is no longer the case.
Today, pricing integrates data from multiple sources to get insights into how different market segments get value and to find new ways to price and monetize the value being provided. The biggest wins in pricing do not come from incremental pricing optimization, but from new insights into value creation and capture.
On Thursday, January 18 at 10:00 AM PST, Ibbaka and data engineering company Keboola are teaming up for a webinar on Data Driven Strategies to Optimize Profit. You can sign up here.
In this webinar, we will dive into
- The Role of Data in Pricing and Pricing Operations
- Data for Pricing is not just Pricing Data
- The Role of Models (Connecting Pricing, Value and Usage)
There will be great insights for people responsible for
- Setting prices for new offers and innovations
- Designing data models and data collection
- Designing business and revenue models
The emergence of new technologies for understanding data and deriving insights are revolutionizing the role of data in setting prices and the creation of innovative new pricing models. The emerging best practice is to have formal models for value and usage and to connect these models to drive pricing.
As you spin up your work for the new year, ask yourself the following questions.
- Am I collecting the data I need to understand the value of my offer to different groups of customers?
- How do usage patterns predict the value my users are getting?
- Does my pricing track the value my customers are getting from my products and services?
- What does my data tell me about where I should change prices to better achieve my business goals?
A formal value model is needed to answer these questions. The value model should integrate many different types of data and translate them into Economic Value Drivers and Emotional Value Drivers.
Want to learn more? To get insights into how to build a value model and use it to answer these cirtical pricing questions please sign up for the webinar.