Profit Drivers on LinkedIn: Integrating Customer Insights and Value-Based Pricing in New Product… (2024)

Profit Drivers

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Customer-driven strategies and value-based pricing are key elements of successful New Product Development (NPD). Our latest article by Steve Wilkins dives into how aligning with customer needs and focusing on pricing based on perceived value can significantly enhance product-market fit and profitability. Explore the benefits of making your NPD process more dynamic and aligned with market demands.

Integrating Customer Insights and Value-Based Pricing in New Product Development Profit Drivers on LinkedIn

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  • Juned Memon

    Certified Product Management Professional | Innovative Solutions | Cross-Functional Collaboration | ISB

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    Hello🤗 Welcome to 🚀 Day 14 of our Product Management series! Today, we're diving into Product Pricing Strategies and the factors to consider when pricing a product.Why Product Pricing Matters:Pricing plays a crucial role in the success of a product, influencing customer perception, profitability, and market positioning. Product managers must carefully consider various factors and employ appropriate pricing strategies to maximize revenue and achieve business objectives.Factors to Consider when Pricing a Product:1. Costs: Calculate all costs associated with producing, marketing, and distributing the product, including materials, labor, overhead, and marketing expenses. Ensure that the pricing strategy covers these costs while generating a profit margin.2. Value Proposition: Assess the perceived value of the product to customers and align pricing accordingly. Products with unique features, superior quality, or significant benefits may command higher prices in the market.3. Competitive Landscape: Analyze competitor pricing strategies and positioning to determine how your product compares in terms of value and price. Consider whether you want to price your product competitively, premium, or as a budget option based on market dynamics.4. Target Market: Understand the purchasing power, preferences, and willingness to pay of your target market. Segment your market based on demographics, psychographics, and behavior to tailor pricing.Different Pricing Models:1. Cost-Plus Pricing: Set prices based on the cost of production plus a markup to ensure profitability.2. Value-Based Pricing: Determine prices based on the perceived value of the product to customers, rather than production costs or competition.3. Competitive Pricing: Set prices based on competitor pricing and positioning in the market, aiming to match, undercut, or differentiate from competitors.4. Skimming Pricing: Initially set high prices to capitalize on early adopters or segments willing to pay a premium, then gradually lower prices to attract more price-sensitive segments.5. Penetration Pricing: Set low initial prices to penetrate the market quickly and gain market share, with the possibility of raising prices later.Implementing Product Pricing Strategies:1. Test and Iterate: Experiment with different pricing strategies and monitor their impact on sales, profitability, and customer satisfaction.2. Dynamic Pricing: Consider implementing dynamic pricing strategies that adjust prices in real-time based on factors such as demand, seasonality, and competitor pricing.3. Promotions and Discounts: Use promotions, discounts, and bundling strategies strategically to stimulate sales, attract new customers, and increase customer loyalty.4. Value Communication: Clearly communicate the value proposition of your product to justify its price to customers. #productmanagement #pricingstrategy #revenueoptimization #marketpositioning

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  • Biju George P C

    Product Management, Product Analytics, Digital Transformation, Innovation, Design, Lean Agile Portfolio & Program Management

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    Product Market Fit does not GUARANTEE long-term success of your product. While achieving product market fit is a significant milestone indicating that a product has found a good fit with its target market and is generating traction and customer satisfaction, it does not guarantee sustained success in the long run. There are several factors that can influence the long-term success of a product, such as changes in market dynamics, evolving customer needs and preferences, competitive landscape, technological advancements, and economic conditions.Even with product market fit, a product may still face challenges in maintaining its relevance and competitive advantage over time. Companies need to continuously innovate, adapt, and iterate their products to stay ahead of the competition and meet the evolving demands of the market. Long-term success often requires ongoing market research, customer feedback, product enhancements, and strategic decision-making to stay aligned with the market's changing landscape The Product Folks #productcoach #productleader #continuousimprovement #pmf

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  • Poonam Tiwari

    Product @ Path2Product | 🚀 Bringing ideas and products to life | The Product Folks

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    The Dark Arts of Pricing: How to Unlock Big Value for Your Product 💰Setting the right price is an art and science that can make or break your product's success. But it's not as simple as just picking a number. 🤹♀️Understand Willingness to PayFirst, you have to pin down what different customers are willing to pay. 💸 This means understanding their pain points and desired gains at a segment level. Going above perceived value leads to lost sales - ouch! 📉Account for CostsBut willingness to pay is only one side of the equation. You also have to consider your costs, which set the floor for viable pricing. 📊 Price below production costs and losses pile up quickly - not great! Understanding fixed vs. variable costs is key.Don't Forget Marketing CostsDon't forget embedding marketing costs too! The spend to acquire customers should absolutely factor into your pricing decisions. 💡 Failing to build these into your targets leads to negative unit economics.Segment and DiscriminateOnce you've figured out the boundaries, it's time for segmentation and discrimination. 👯♀️ Customers aren't all equal - smart pricing tailors to different usage, personas and channels. Reflect Value, Not CostsNow here's a key point: price should reflect value delivered, not internal costs! 💡 Customers don't care about your cost structure - they care about relieving pains and enabling gains. 🔥Adapt to External ForcesYou also have to adapt pricing to external forces like competition and economic conditions. The landscape shapes your power and flexibility! 🌪️Iterate Based on DataFinally, great pricing requires continuous iteration based on data and feedback. 📈 It's not a set-and-forget exercise! A/B testing and constant optimization are a must.Want to chat more about optimizing pricing? Happy to grab virtual coffee! 😊☕️ #Writein30 #productmanagement

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  • Miles Baker

    Product Manager

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    Effective product management goes beyond timelines. Research by the Standish Group has shown that only 29% of IT projects are successful, with many failing due to poor understanding of market trends, competitor analysis, and customer behavior. By conducting thorough research and analysis, product managers can make informed decisions that increase the likelihood of product success. #productstrategy #marketanalysis

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  • Hanover Research

    12,937 followers

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    Launching a product is just the beginning. Explore the benefits of post #productlaunch analysis, from optimizing performance to identifying new markets in this blog #businessinsights https://hubs.ly/Q02mfDGl0

    5 Questions To Ask After a Product Launch https://www.hanoverresearch.com

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  • Ritika Chaudhury

    Strategy & Operations | Growth, Product | Consumer Businesses - Marketplaces, Retail

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    Attended an incredible panel discussion on running top-notch Order Management System (#OMS) product teams, led by Chap Achen and featuring the brilliant insights of 🌟 Katie Brown, Divyangna Singh, and Bernard Schmidt. 🚀 Here are my key takeaways: 1️⃣ OMS isn't a back-end function anymore – it's a crucial part of the front-end customer experience! It's about enabling customers to seamlessly order products through their preferred channels and receiving deliveries at their preferred time, preferred location, and at the best possible rate.2️⃣ OMS Product Managers are the ultimate multitaskers, juggling interactions with a multitude of stakeholders. With stakes this high, exceptional business acumen is a must. 20 - 40% of success often hinges on building strong relationships to foster collaboration and alignment across teams.3️⃣ When a roadmap hits a snag, it's easy to get lost in the maze of solutions. But remember, understanding the "why" behind the failure is key. Dive deep, identify pain points, and focus on quick wins to keep team morale soaring!4️⃣ In the era of AI/ML frenzy, it's tempting to shoehorn tech solutions into every problem. But hold your horses! Start by defining use cases, assessing capabilities, and then find the perfect tech solutions and partners to implement them.🛒 OMS isn't just about reducing cost-to-serve anymore – it's a game-changer for customer experience and hence, revenue. Better inventory management, availability and fulfilment means more clicks and higher conversions in today's omni-channel (or opti-channel) world. 🔥 Retailers, take note – upgrading your OMS is your ticket to a competitive edge!#OMS #ProductManagement #RetailRevolution #nextuple

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  • Gocious

    1,407 followers

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    What Is Market Saturation and Why Does It Happen? - Discover the critical concept of market saturation and its impact on product development. Dive into strategies to navigate this pivotal turning point. #productdevelopment #productmanagement #productpivothttps://hubs.ly/Q027gC4t0

    What Is Market Saturation and Why Does It Happen? blog.gocious.com
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  • Basimah Aloboudi

    Product Development Manager | E-Commerce

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    ❤️ Customers are the heartbeat of innovation!Over the past few months, I've read over a thousand comments from #LaBelle's customers and our other brands, instead of settling for a superficial review of sales and returns figures.Because we, at Two Holdings Company believe that the customer is the primary partner in innovation and development.But what can the extended time spent reading comments offer me as a product developer?Understanding customer expectations and pinpointing features that matter most to them.Discovering potential product issues through customer feedback, enabling swift corrective action.Gaining constructive suggestions from customers on how to enhance the product and better meet their expectations.In a nutshell , the time invested in reading customer comments allows for the identification of product strengths and weaknesses, immediate feedback responses, improved customer experiences, and continuous product development aligned with market needs.Absolutely! Rest assured that when you leave a simple comment on our brands' products, it will be read with utmost attention. We value and prioritize customer feedback as a crucial source of insights for improving our products and ensuring they meet your expectations. #CustomerFeedback #InnovationPartnership #CustomerFirst #ProductDevelopment #feedback

    • Profit Drivers on LinkedIn: Integrating Customer Insights and Value-Based Pricing in New Product… (22)

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  • Jeff Lash

    VP, Global Product Management @ Forrester | Product Exec and Coach: B2B, Information Services, SaaS

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    Product Management Daily Tip, Day 203: Instead of discounting, look for value levers.Too many companies are too quick to drop the price when a prospect asks -- or even if they sense there might be a price objection.If you've done a good job on segmentation and value-based pricing, you (and sales!) should feel confident in the prices you established.Still, there can sometimes be the expectation of a discount, or just the need to "win" something in the negotiation.Establish a set of value levers that can be offered *before* (or instead of) resorting to discounting. For example:- Flexible payment terms (e.g. net 60 rather than net 30).- Upgrades to higher levels of service- Pre-release access to new features(Follow #ProdMgmtDailyTip for a #productmanagement tip every day in 2023.)

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  • Heather Gavranovic

    Empowering Leaders with Exclusive Networking Opportunities and Expert Strategic Connections

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    Great insights in the following blogpost about the balance between Product-Led Growth (PLG) and Customer Nurturing. As product landscapes continue to evolve, it's essential for CPOs to gauge whether their product requires in-depth user education or if its value proposition speaks for itself. I particularly appreciate the comprehensive checklist for nurturing campaigns. It underscores the multi-faceted nature of building trust and understanding with potential customers. Ensuring that a prospect is not only aware of the problem but also deeply understands the solution's unique value proposition is paramount. The emphasis on company culture and values is especially crucial in today's market, where consumers are more conscious than ever about the brands they support. 👏 #CustomerNurturing #ProductLedGrowthhttps://lnkd.in/gd5yAiVe

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