Pricing, an additional dimension to CRM philosophy
Many companies have embraced Customer Relationship Management (CRM) as a way to manage better their relationships not only with current customers but also with potential customers, resulting in increased sales performance. Today, we can conclude that many companies have made progress to evolve from a product focused to a customer centric organization. However, companies still have a long way to go to fully understand their customers’ profitability as well as their customers’ perception of value. Nevertheless, both insights will help a company to withstand today’s highly competitive market environment in which customers have become more demanding and shareholders push for short term results.
Also as an answer to this market evolution, an increased focus on pricing has emerged as the most effective and efficient way to sustain and improve a company’s revenue and profitability.
We believe that CRM and pricing are complementary initiatives that will help a company to excel in a challenging business environment. As this article will clearly illustrate, considering both initiatives together will represent more value than the sum of the isolated initiatives.