IMPORTED FROM SKOOL
Original Post was posted by Frederic Laziou on Aug '24
Good morning,
I am curious to understand what you have seen as key success factors when it comes to work that needs to be done behind the scene (i.e. systems like CPQ, masterdata, managing your SKUs…) in order to successfully execute a new package and pricing design.
Kacper Floryn • Aug '24
From my perspective (sales), it’s crucial to have good coordination and clear communication between pricing, sales, marketing, and IT teams to align systems and data with pricing goals. They should all be informed and understand the reason for implementing the new package and pricing design.
Carsten Kunkel • Aug '24
In my experience, a very complex product catalog can (and will) slow down the progress of a new packaging and pricing structure—especially when there is a need/desire to keep the old structure alive for existing clients, which creates a parallel universe. This is more likely to be a challenge in established companies.
From the start, it is super important to manage the complexity of your product catalog (both CPQ product, i.e., what you sell, as well as BOM product, i.e., components you use to create the expected outcomes).
Ron Kugler • Aug '24
This is really a pure Pricing Ops function. In bigger companies, you would have a separate Pricing Ops function—a key enabler to the Pricing team that ensures operational viability. In my experience, this can be a mixed bag in smaller companies where this is not a separate function. There, this is mostly covered by RevOps/Sales Ops, or if you do have an internal dedicated Pricing function, by the Pricing function. Products are not usually in charge of this, and let’s face it, nor should they be.
Vinicius Corte Real • Sep '24
@Ron Kugler
In my experience running RevOps and Sales Ops in different startup stages (from $5M to $60M), we didn’t have the time or priority to run Pricing Ops. So, we would participate in the pricing committee (usually run by Product Marketing), being responsible for sharing information about how the monetization strategy coordinates with the go-to-market strategy. In practical terms, we would share conversion rates, lost deals with budget/pricing being the main factor, and all KPIs that are relevant to pricing decisions.