Are you planning a price increase for 2023? Before you execute on a price increase you need to segment your customers. The segmentation is based on Value to Customer (V2C) and a measure of the value of the customer to the company like ARR or LTV (life time value of the customer). You want to move customers into the segment where they are getting a lot of value and providing a lot of value.

A pricing metric is the unit of consumption for which the buyer pays. An example of a pricing metric is dollars per litre for purchasing fuel. Choosing a pricing metric is one of the most important steps in designing value-based pricing.

Fashioning a business with value at the center requires a commitment to ongoing value creation for customer stakeholders. In depth understanding of how value is created for the customer is foundational to designing fair and effective value-based pricing. It also creates positive customer experiences across the customer lifecycle. Customer value management is an emerging business practice that manages value to customer (V2C) across the full customer journey.

The value ratio is a critical but frequently overlooked pricing metric. Tracing this metric is critical to your long-term health. Deciding what level to target is one of the most important Where to Play choices you make in pricing.

Usage-based pricing is one of the themes in 2021. Both product led growth and service led growth strategies work best when there is an element of usage based pricing. But where to start? We walk you through the best way to layer in usage-based pricing.

Willingness to Pay (WTP) is one of the most popular ideas in pricing. Many software packages or consultants will tell you that they can calculate your customer’s willingness to pay and use that to set prices. What happens when willingness to pay collides with ability to pay? Or when there is compelling community need that transcends either.

Services unfold over time, and when you design a service and its pricing you need to make sure to consider how emotional and economic value unfold over time. Find some way to make sure buyers get at least some economic and emotional value early on.