In our January 2011 webinar, Value-Based Pricing in the New Product DevelopmentProcess, we discussed the current state of product development among leading companies, their key challenges, and possible solutions. From our own experiences working with customers on such issues, we advocate a product developmentapproach that:
- incorporates a value-based pricing mindset;
- taps into the enterprise’s expertise across functional silos;
- validates differential value using customer input; and
- uses dynamic models to fine-tune the value proposition
CASE STUDY: CUSTOMER SERVICE SOFTWARE
One case example we used to illustrate these best practices in action involved a global enterprise that sells customer service software. Their next-generation solution represented both a major technical innovation as well as a “bet the farm” strategic decision. It was a huge window of opportunity to dominate their market. However, competitive rivals were already introducing new offerings in the market and incenting customers to upgrade from existing “green-screen” legacy systems. Nailing the value proposition from the onset was therefore absolutely crucial for this company’s success ... read more here
