Digital Pricing Strategy: Capturing Value from Digital Innovations

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