This PPT slide, part of the 47-slide Value-based Pricing Strategy PowerPoint presentation, focuses on the critical task of identifying an acceptable return on investment (ROI) for customers, which is part of a broader phase aimed at determining an equitable split in value. It emphasizes that customers typically operate under well-defined ROI rules when making capital budgeting decisions. These rules encompass various criteria, including payback periods and specific ROI goals, which are essential for guiding purchasing decisions.
Understanding these criteria is not just beneficial--it’s crucial. Knowing what drives a customer's investment decisions allows for better alignment of offerings with their expectations. The slide outlines that the first step in this phase is to identify what constitutes an acceptable ROI for the customer. This understanding can significantly influence how a company positions its products or services.
The slide also hints at subsequent steps, such as identifying the next-best alternative and protecting the core value of the offering. This suggests a structured approach to value-based pricing, where the focus is not only on what the company offers, but also on how that offering compares to alternatives available in the market.
The text encourages establishing trust with customers, highlighting the importance of handling sensitive information with care. This aspect is vital for building long-term relationships and ensuring that customers feel secure in their investment decisions. Overall, the slide serves as a foundational element for companies looking to refine their pricing strategies by closely aligning with customer expectations and investment criteria.
This slide is part of the Value-based Pricing Strategy PowerPoint presentation.
Designed by a firm of ex-consultants from McKinsey, E&Y, and Bearing Point, this presentation breaks down a consulting framework on Value-based Pricing. Value-based Pricing is a superior approach to Cost-based and Competitive Pricing.
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