How product marketers can get a seat at the pricing table

Transcript

1. Contents of this presentation are confidential. HOW PRODUCT MARKETERS CAN GET A SEAT AT THE PRICING TABLE Axel Kirstetter, VP Product Marketing, Content Marketing, Pricing March 21, 2019 Product Marketing Summit
2. 2 AGENDA • Pricing ownership • What is pricing • Areas PMM can influence pricing • Starting with pricing in your org • Summary • Polling, QnA - Use Sli.do - #PMM
3. Pricing ownership
4. 4 POLL #1 Who owns pricing in your organization - Finance - Product - Sales - Marketing - Other Join the conversation: Sli.do - #PMM – to respond to the poll and ask questions
5. What is pricing
6. 6 PRICING IN CONTEXT Product All about the offering Promotion How are benefits communicated and buyers enticed Place Channel to market choices Price Cost buyers are willing to pay Process Systems and processes that bring 4Ps together People Intellectual Capital behind 4 Ps Price is to be seen alongside 4 Ps Applies to B2C and B2B Marketing Mix
7. 7 PRICING IN ACTION Cost Structure Sales Promotion Positioning Pricing Policy Monetization Type Competitive Pricing Different pricing according stage (early, growth, mature) Pricing ≠ deal making Pricing
8. Areas PMM can influence
9. ASSETS TOUCHED ON BY PMM Prospect Lead Close Consideration Research Selection Purchase Delivery Awareness Search Engine Marketing (Organic & Paid) Vertical Search Engine Marketing (Organic & Paid) Trade/Industry Events Partner Assets Community Programs Research analyst Events Technical Exchanges Marketing Promotions Contextual Banner Marketing Speaking Engagement Website Micro Site Social Networks Partner Events/Programs Blogs(Topical and Industry) Webinars/Webcasts(bra nd & partner) Viral Marketing Online media Programs Online media Programs(industry- specific) Sales Guide Playbook containing best practices, strategies, resources, references and guided-selling processes Demos Case Studios Whitepapers Analyst Reports Competitive Analyses Product Data and Factsheets Technical and Architectural Papers Application Scenarios and Journal Articles Company Brochure Service Collateral Partner Collateral Trials Customer Reference Program Community Programs Analyst Reports Executive Sponsor/Briefing Customer Advisory board User Group Programs AFIs/RFPs Customer Reference Program Customer advisory Board WW, Regional and Local User Events Training and Educational Programs Installation, Service and Support Programs Contracts Pricing Customer References Customer Advisory Board
10. 10 PRICING TOUCHPOINTS Audience Insight Buyer Research Funnel Mgmt. Proposal & Packaging Mgmt. Performance Reporting Influencer Mgmt. PMM
11. Tools • Willingness to pay analysis • Market sizing • Opportunity definition • Trade-offs / preferences 1 Audience Insight TOOLS & ACTIVATION AUDIENCE INSIGHT • Profit / Revenue Maximization • Go / No-go decision • Business case development • Packaging / Tiering Activation Audience Insight Path to success Create your own research community • via panel management vendors • customer success department • or user experience management process
12. 12 EXAMPLE
13. Tools • Persona Definition • Segmentation • Value perception 2 Buyer research TOOLS & ACTIVATION BUYER RESEARCH • Value Persona • Website content • Buying journey mapping Activation Buyer Research Path to success Update persona documents annually • via field research • conduct win/loss interviews • Validate with CRM data • Validate with sales reps and customer success reps
14. 14 EXAMPLE Reference: https://www.priceintelligently.com/blog/quantified-buyer-personas
15. Tools • MQL / SAL • Trial / conversion • PQL 3 Funnel management TOOLS & ACTIVATION FUNNEL MANAGEMENT • Website purchasing journey • A/B testing Activation Funnel management Path to success • Work with digital teams • to map buyer persona and stages in web page conversions • in buying journey ensuring ongoing feedback around drop-off • Test pricing and price point communications at different point in journey
16. 16 EXAMPLE Source: https://www.slideshare.net/Aptrinsic/accelerate-growth-with-product-qualified-leads-pqls
17. 17 POLL #2 What is current pricing situation like. Do you experience: - Pricing power - Pricing presence - Pricing pressure Join the conversation: Sli.do - #PMM – to respond to the poll and ask questions
18. Tools • Proposal • SOW • Packaging • Add-ons • Promotions • Discount 4 P & P Mgmt TOOLS & ACTIVATION PROPOSAL AND PACKAGING MANAGEMENT Work with: - Marcoms team on design - Product team on packaging - Legal on SOW - Finance on rev. rec. impact Activation P & P mgmt Path to success Redevelop proposal • Turn it from Word doc to PPT or Infographic • Write intro paragraphs for Sales • Positioning to match proposal to match SOW •
19. 19 EXAMPLE
20. Tools • Win/losses • Avg Ticket price by cohort, term, competitor, territory 5 Performance Report TOOLS & ACTIVATION PERFORMANCE REPORTING • Quarterly Business Review • Steering committee • Dashboard Activation Performance Report Path to success Every month spend 4 hrs going through CRM: • Analyze the data in CRM • Create quarterly review of facts and figures and overall performance levels • Review with your steering committee made up of sales, PM, Finance
21. 21 EXAMPLE
22. Tools • Analysts • Blogger • Influencers 6 Influencer mgmt TOOLS & ACTIVATION INFLUENCER MANAGEMENT • Source of competitive intel • Data, facts and figures • Offers Activation Influencer mgmt Path to success Identify top 3 opinion-makers in your space. Ask them • About your company’s value reputation and where it comes from • Price benchmarks for offering / industry • Substitutes offerings
23. 23 EXAMPLE Source: https://www.prmention.com/blog/heres-how-to-rule-media-with-this-influencer-marketing-strategy/
24. 24 POLL #3 Which area will you attempt to influence going forward? - Audience Insight - Buyer Research - Funnel Management - Proposal & Packaging Management - Performance Reporting - Influencer Management Join the conversation: Sli.do - #PMM – to respond to the poll and ask questions
25. Starting with pricing in your organization
26. 26 DISCOVER VALUE FOR YOUR OFFERING IN YOUR ORGANIZATION 1. Conduct qualitative interviews to identify value 1. Conduct win/loss interview. Pick the ones that were lost due to price 2. Listen for common value proposition challenges 2. Conduct quantitative study [A] to identify feature preference by segment 1. Qualify in and target right audience 2. Ask which value proposition works best 3. Ask for relative feature preference OR ask for pain point trade-off 3. Conduct quantitative study [B] to identify price point 1. Screen audience (ask the right audience) 2. Show video, screenshots, testimonial, description of offerings 3. Ask what price points someone would pay for offering
27. Summary
28. 28 PMM OWNERSHIP OF PRICING Prospect Lead Close Consideration Research Selection Purchase Delivery Awareness Search Engine Marketing (Organic & Paid) Research analyst Events Marketing Promotions Website Micro Site Competitive Analyses Trials Community Programs User Group Programs Installation, Service and Support Programs Contracts Pricing Sales Guide Playbook containing best practices, strategies, resources, references and guided-selling processes PMM ownership Path to success · Persona definition · Website content · Email design · Campaign content · A/B testing · Proposal creation · Quarterly business review · ROI calculator · Customer interviews / case studies
29. QnA +@axlki