"Customer Value Based Pricing strategy is more oriented towards the longer term"
The core business of Impulssum is all about the strategy around Value Based Pricing. The most important thing in Value Based Pricing is that it starts with the Value your customer wants and expects. Value Based Pricing is also called customer-focused pricing, which means that companies base their pricing method on how much the customer believes their products are worth. These values are important and should be directed to the entire organization, including communications and operations. Besides that, Customer Value Based Pricing strategy is a pricing method that is more oriented towards the longer term.
The Value Based Pricing method can be applied to all markets, products and services. It helps unique products and services to stand out even more, but also helps commoditized products and services to find a competitive edge again. You need to know what your customers needs are and direct your organization towards these values. You not necessarily need to be different than competition, but be the best in delivering exactly what your customers needs are. The perceived value customers allocate to your products and services shows the worth that customers are willing to accredit to it and hence consequently their willingness to pay. Next to a longer term view on monetization, Value Based Pricing also allows to identify the best short-term monetization potentials.
When you are using the Value Based Pricing strategy, the value of your product or service is not the only thing you should determine to let your strategy be successful. It is also important that you have a streamlined Value communication with your customers in every touchpoint, and build a strong relationship with them. In addition, you have to continuously collect feedback from your customers to get to know what they are looking for, and know how much they want to pay for it. You have to stay in close contact with your customers, so you can always respond to their needs quickly and well before competition.
Are you interested in the Customer Value Based Pricing method for your company? Impulssum has already helped many companies, corporates, medium-sized companies as well as Scale-ups, to implement the Value Based Pricing method successfully. Download our whitepaper about Value Based Pricing Strategy for more information about this successful pricing strategy. Are you ready to create impact together? Contact us through the button below!Get in contact