The final choice in the strategic choice cascade is the systems you will need around the value cycle. As you design the systems that support your pricing strategy, take a holistic approach to the systems you will need to enable success.

The third choice in the strategic choice cascade is how to win. In pricing, how to win choices are where you align your pricing and portfolio with your target market. This is product market fit, with fit including your pricing model and market including your competitive positioning. Connecting the value metric and pricing metric is an important part of this work.

The second choice in the strategic choice cascade is where to play. In pricing, where to play choices are based on a value-based market segmentation. A good segment is one where potential customers get value in the same way and buy in the same way. The segmentation helps one to target the most attractive customers.

The first choice in the strategic choice cascade is your winning aspirations. Pricing is a powerful lever and it can do many things, but it cannot do everything at the same time. Building alignment on what your pricing strategy is meant to achieve is the first step to a winning pricing strategy.

Roger Martin’s Strategic Choice Cascade is a powerful way to frame strategy. Ibbaka has developed a version of this specific to pricing choices. Karen Chiang and Steven Forth will be giving a workshop on how to apply this framework at the Spring 2021 Professional Pricing Society Virtual Conferece.

We interview Kevin Mitchell of the Professional Pricing Society to get insight into how they have been building a community of pricing professionals.