If you're a CMO who wants to deliver REAL value in 2023 and your business has been pricing products and services using rationales like "tried and tested" or "market pricing", this post is for you.
Most CEOs and CMOs know that a 1% Price Increase = an 8.7% Increase in Operating Profits.
However, up to 30% of thousands of pricing decisions that companies make every year -> FAIL to deliver the best price.
But why?
It's because pricing for optimal profit can be highly complex and overwhelming.
With the amount of Big Data available, it can be incredibly challenging to dive deep into the numbers using spreadsheets alone to go beyond the simple, high-level pricing formulas we all know.
This is why it's critical for your business to have a pricing-focused CMO or lead Marketer (even if you have to hire an Interim or complementary CMO) to create optimal profit-generating pricing practices.
To unlock the power of your data in setting pricing, do these four (4) things:
1. Listen - Analyze the data and let data not subjective opinions drive your pricing decisions.
2. Automate - It's less time and labor-intensive, and critical to scaling.
3. Build Skills & Confidence - When implementing new pricing practices, you must help your sales team understand and embrace the new data-driven approaches.
4. Actively Manage Performance - When dealing with your sales team, set goals, be transparent with profitability by customer, and empower them to adjust prices (within guidelines).
Are your products and services optimally priced for profit?
About The CMO Syndicate
The CMO Syndicate is a diverse group of world-class Chief Marketing Officers who rapidly solve growth and profit problems for CEOs, VCs, CMOs, and PE firms. As global CMOs from the world’s top companies, The CMO Syndicate is not a traditional marketing consulting agency, and we are not typical marketing or growth consultants. We are growth experts and operators who actually do the work on a part-time or project basis as outsourced fractional and interim CMOs.