Defending price pressure in services industry
Defending price pressure in services industry
On the question ; we love your service and customer intimacy, but why are you so expensive ?
Account managers said not to have sufficient, fact based ,arguments to counter this question. There was a fear in the key account organisation that they were not equiped to defend the service value in front of a price sensitive buyer - and some marketeers even started doubting about the value...
How we helped
After evaluating the key accounts concerns, we started with an Economic Value Calculation excercise in order to understand if the value of the organisation was really 'worth the price' versus the next best alternatives.
1/ understand segmentation
2/ define the differentiating value drivers
3/ build a data sheet for value calculation
4/ assess versus the next best alternatives
Impact
- The EVC clearly proofed that the organisation delivered exceptional value for the customers
- The excercise demonstrated the differentiating value drivers and the impact on the cost savings/cost avoidance/revenue generation and risk avoidance for the customer
- New insights around possible new value drivers were detected to drive further innovation
- Price pressure could be effectively countered