Whilst the modelling process is where pricing strategy begins, getting changes in front of customers is where the rubber hits the road and new pricing is tested with real customers. Moving quickly to make changes to live pricing offers pricing teams an opportunity to respond to the market, test and iterate, and roll out new products.
With pricing critical to growth and profitability, businesses must understand the impact of any price changes, as well as ensure what goes live to customers is identical to that modelled. With pricing driven by complex financial models, this is particularly true - a percentage point error in the code deployed could easily lead to a significant financial impact.
In any fast moving business, having a clear record of decisions, changes and their impacts is key to operating efficiently and successfully. For regulated industries, a clear governance process is a requirement and critical to ensuring compliance with local regulations.
Underlying all pricing strategy is data, whether it be on the market and competition or a company’s own quote, sales and cost data. Collecting this data and using it to inform future pricing decisions is one of a pricing team’s key objectives.
Over the past few months, we've talked to over 100 pricing and technology professionals from a range of industries. From our conversations, many pricing pain points have emerged, helping us to better understand the challenges businesses face and inform the direction of our platform.
Financial pricing models (think insurance, credit, mortgages, financing, leasing, memberships) have, and continue to be, designed in spreadsheets and published through in-house custom code or legacy enterprise software. Pricing changes can take weeks instead of hours.