Strategic Price Segmentation Services

Executives who interact and manage customers know that no two customers are alike.  Different customers value the firm’s offering differently.  Different customers have different costs to serve.  And therefore, different customers need and deserve different prices.

With a good price segmentation strategy, a firm can serve more customers and earn higher profits.  With a poor price segmentation strategy, the firm’s market may suffer from price contagion, where the segmentation hedge is leaky, the most profitable customers demand a deeply discounted price, and a price that was extended under special circumstances to a specific customer segment becomes the new norm for the firm’s market.  Clearly the former of these two outcomes is preferred.

Wiglaf Pricing works with executives to define the most appropriate price segmentation strategy.

• We conduct market research to uncover the drivers to value within the market in developing the market driven side of a firm’s price segmentation strategy.
• We conduct internal research to uncover the drivers to cost within the firm that are customer dependent in developing the profit alignment side of a firm’s price segmentation strategy.
• We identify objective and enforceable criteria that can be used to price segment a market.
• We develop transition strategies to enable the firm to move towards a more rational price segmentation policy.

The anticipated result of a Wiglaf Pricing price segmentation engagement is an understanding of value drivers of a product for customers and the customer segment and behavioral criteria for profitable price segmentation.