Digital Pricing Strategy

Table of contents

1. Cover
2. Endorsements
3. Half-Title
4. Title
5. Copyright
6. Dedication
7. Contents
8. List of Figures
9. List of Tables
10. List of Contributors
11. Acknowledgments
12. Introduction
    1. Motivation for the book
    2. Gathering of the best experts in the world
    3. Structure of the book
    4. Key questions and future areas of research
    5. References
13. SECTION 1 DIGITAL PRICING
    1. 1 The Essential Ingredient for More Effective Digital Pricing: Value
       1. Changing the script in digital pricing strategy
       2. How to measure value for use in digital pricing
       3. Leveraging technology to measure value
       4. Evaluating value-based digital pricing over time
       5. The dangers of a good/better/best model
       6. The powerful pairing of value pricing and value selling
       7. CVM and the direct impact on SaaS pricing
       8. Building value synergies in digital pricing and selling
       9. Bio
    2. 2 Publish Your Prices
       1. Setting the stage
       2. Spirit Airlines versus Southwest Airlines
       3. The SaaS imperative
       4. Practicing value-based pricing
       5. Lowering barriers to buy
       6. Enabling customer self-selection
       7. Demonstrating customer-centricity
       8. Conclusion
       9. Bio
       10. References
    3. 3 Dynamic Pricing Process: How to Transition from Fixed to Dynamic Pricing?
       1. Overcoming the paradigm of fixed prices
       2. Forms of dynamic pricing
       3. Dynamic pricing: Price differences over time
       4. Personalized pricing: Price differences among consumers
       5. Dynamic pricing process
       6. Dynamic pricing strategy
       7. Dynamic price setting
       8. Context factors for price setting
       9. Dynamic pricing implementation
       10. Dynamic pricing auditing
       11. Conclusion
       12. Acknowledgments
       13. Bio
       14. References
    4. 4 Realizing Your Monetization Potential Needs Customer Value Management
       1. Introducing customer value management
       2. The changing customer
       3. All subscription businesses will need to behave like software businesses
       4. So, what does a successful customer value management strategy look like?
       5. Value management starts with discovery
       6. The next evolution of CRM
       7. Value of CVM to a B2B software company
       8. Conclusion
       9. Bios
    5. 5 Measure and Quantify the Value of Your Digital Solution
       1. Competition redefined!
       2. What is your basis for true differentiation?
       3. Choosing and using dollarization techniques
       4. Difficulties in dollarizing data-driven and digital offers
       5. Value modeling: Expressing relative value in money terms
       6. The must-do tasks for dollarization
       7. Bio
       8. Note
14. SECTION 2 SOFTWARE AND SUBSCRIPTION-BASED PRICING
    1. 6 Price Increase for Discounted Customers in SaaS: Pricing Research Description and Success Story
       1. Understanding value creation versus price realization
       2. Case study introduction
       3. Revenue engine diagnostics
       4. Impact modeling and risk reduction
       5. Marking leakage implementation and project ROI
       6. Conclusions
       7. Bio
    2. 7 SaaS Pricing: From Subscriptions to Usage-Based Pricing Models
       1. Pricing: An important, yet neglected activity
       2. Price-setting approaches in the software industry
       3. Price getting in the software industry: Extreme levels of discounting
       4. Software pricing models
       5. Best practices of usage-based pricing models
       6. Capabilities critical for implementing usage-based pricing models in SaaS
       7. Conclusion
       8. References
    3. 8 The Digital Pricing Framework: Best Practices in B2B Pricing and Offer Design
       1. Introduction
       2. The digital pricing framework
       3. The road to value-based digital commercial offers
       4. Strategy (the 10,000-foot view)
       5. Price-value analysis (the 2,000-foot view)
       6. Commercial structure (the 500-foot view)
       7. Financial analysis (ground-level view)
       8. Conclusion
       9. Bio
       10. References
    4. 9 Tapping into the Subscriber Psychology with Good/Better/Best: Is There an Optimal Ratio between Tiers?
       1. Executive summary
       2. The shift to usership is accelerating
       3. The shift from product-centric to subscriber-centric
       4. Linear, product-centric model
       5. Dynamic, subscriber-centric model
       6. Why good/better/best?
       7. The beer trial
       8. Finding the right balance: How to build a GBB package
       9. Design tiers to address the needs of your customer segments
       10. Deploy pricing strategy based on your organizational maturity and market positioning
       11. Bios
       12. References
    5. 10 Value-Based Pricing of Smart-Product-Service Offerings in the Manufacturing Industry
       1. Introduction
       2. Framework for pricing smart-product-service offerings
       3. Smart-product-service-system design
       4. Value determination
       5. Price model design
       6. Price metric design
       7. Four pricing patterns for smart-product-service offerings
       8. Conclusions
       9. Bio
       10. References
    6. 11 Price Sensitivity Meter and Conjoint Analysis as Tools for Setting Your Industrial Subscription Pricing
       1. Part 1: How to run a price sensitivity meter exercise
       2. Bio
       3. Part 2: A practical guide to conjoint analysis: Injecting more confidence into your strategic pricing decisions
       4. Bio
15. SECTION 3 THE VALUE AND PRICING OF DATA
    1. 12 Overcoming Real-World Challenges in B2B Digital Pricing Transformation
       1. Introduction
       2. The team
       3. Project or product?
       4. Data
       5. Technology and technical skills
       6. Algorithms and models
       7. Testing and auditability
       8. Integrations
       9. Continuous experimentation (A/B testing)
       10. Conclusions
       11. Bio
    2. 13 Holistic Approach to Market Segmentation of Industrial Smart Services: What Is the True Value of Data?
       1. Introduction
       2. Industrial market segmentation
       3. Alternative framework: Defining the key triggers from a buyer’s perspective
       4. The process: Results of pilot project
       5. Conclusions
       6. Bio
       7. References
    3. 14 Three Considerations for Data Monetization and Value Creation in the Digital Age
       1. Introduction
       2. First consideration: The four stages of data monetization
       3. Second consideration: Creating a data strategy that delivers value
       4. Third consideration: Value engineering—The secret sauce for data science success
       5. Bio
       6. Note
       7. References
    4. 15 The Economics of AI: How to Shift Data Projects from Cost to Revenue Center
       1. Introduction
       2. The economics of AI
       3. The cost of enterprise AI
       4. Capitalization and reuse
       5. Capitalization and reuse with an AI platform
       6. Conclusion
       7. Bios
       8. References
    5. 16 The Pricing of Data: An Interview with Jian Pei, Simon Fraser University
       1. Bio
16. SECTION 4 THE PRICING OF PLATFORMS AND MARKETPLACES
    1. 17 Marketplace Monetization Methods
       1. Monetization methods
       2. Current trends in marketplace monetization
       3. Bio
       4. Note
    2. 18 The Monetization of Marketplaces and Platforms in the Context of Web 3.0
       1. Introduction
       2. Web 1.0: The read-only web
       3. Web 2.0: The interactive and social web
       4. In the latter part of Web 2.0, the sharing economy took hold
       5. Web 3.0 is about to take hold. here is where things get really interesting
       6. The future benefits
       7. Conclusion
       8. Bio
       9. Reference
    3. 19 Pricing in Platforms and Marketplaces: A Primer in Understanding All the Dimensions of the Pricing Problem and Opportunity in Marketplace Platforms
       1. Platforms offer complex pricing opportunities
       2. Pricing in the marketplace
       3. Pricing the ‘product side’ of your platform strategy
       4. Another pricing context: Your extensions platform
       5. Pricing and unit economics
       6. How to use pricing strategically in platforms and marketplaces
       7. Conclusions
       8. Bio
       9. References
    4. 20 Online Pricing Experimentation
       1. Introduction
       2. Why experiment
       3. Steps in a pricing experiment
       4. How should pricing experimentation be organized?
       5. Summary
       6. Acknowledgments
       7. Bio
       8. References
17. SECTION 5 PRICING AND ARTIFICIAL INTELLIGENCE
    1. 21 Artificial Intelligence and Its Impact on Pricing Technology
       1. Introduction
       2. Fourteen ways AI impacts and improves pricing
       3. Bio
       4. References
    2. 22 Why AI Transformations Should Start with Pricing
       1. Why pricing is an excellent target
       2. A CPG company’s AI pricing transformation
       3. Three key steps to success
       4. Bios
       5. Acknowledgments
       6. References
    3. 23 Digitization of B2B Pricing: A Fundamental Shift Required
       1. Introduction
       2. Changing B2B buyer needs
       3. How does B2B pricing need to change to meet the needs of the new B2B buyer?
       4. Bio
       5. References
    4. 24 Value-Based Offers Assisted by Artificial Intelligence
       1. AI methodology
       2. Making the value-based offers relevant and personalized
       3. Making the platform agile, aligned, and actionable
       4. Bios
       5. References
    5. 25 Digital Transformation: How to Convert a Buzzword into Real Bottom-Line Value
       1. Demystifying digital transformation
       2. Empowering B2B buyers and sellers with digital commerce
       3. Improve the omnichannel experience with deal negotiation
       4. Where human intelligence and artificial intelligence converge
       5. Achieving and measuring commercial excellence
       6. A practical example: World-leading water technology company Xylem enables value-based pricing for 1 million product configurations
       7. Not a project, a transformation
       8. A practical example: Molex’s commitment to commercial excellence
       9. So, who owns pricing?
       10. A practical example: How a $150 billion+ integrated health care services company reimagined its strategic outlook toward pricing
       11. Conclusion
       12. Bios
       13. References
18. Index