Pricing Process: Current Product

The following is an excerpt from our book, Pricing for Associations, available now on Amazon.

The following is our recommended process for pricing a current product at Pricing for Associations:

Step 1: Kick Off Meeting

To kickstart the pricing and value analysis project, we will hold an initial meeting with all the stakeholders. This meeting will be essential to set the foundation for the entire project. During the meeting, we will review past annual product pricing and value reviews. This information will be crucial in understanding how pricing and value have evolved over the years and will help us identify the areas that need improvement.

Defining what success will look like at the end of the project is another critical aspect of the initial meeting. By having clear objectives and goals, we will ensure that everyone is aligned and working towards a common goal. We will also discuss timelines for each future step of the project to ensure that the project is completed within the specified timeframe.

One of the key factors that determine the success of the pricing and value analysis project is the data we review. During the initial meeting, we will identify the data that we will analyze. This data will include customer feedback, engagement metrics, and financial performance data. We will also establish survey and focus group goals for value analysis and pricing analysis to ensure we gather insights from our customers and stakeholders.

Finally, we will discuss the importance of timely communication throughout the project. The marketing team will be responsible for scheduling and sending email reminders for surveys and focus groups. We will also schedule future deadlines and meetings and plug them into our calendars to ensure that we stay on track and achieve our objectives. By holding an initial meeting, we will set the foundation for a successful pricing and value analysis project.

Step 2: Data Analysis

The departmental team will review the discussed data and/or competing programs/organizations agreed upon from Step 1 to analyze segments and possible pricing metrics, value levers, engagement, and patterns in consumer behavior. We will then hold a meeting to discuss initial findings, discuss what demographic, value, and pricing metrics we will gather through value analysis, and agree upon the next steps for value analysis to test these recommendations. At the end of this meeting, we will have defined what modes of value analysis will occur with which particular segments.

When reviewing the performance of different products or services, associations should analyze a variety of data points to determine if their pricing and value strategies are working. For membership, important metrics to consider include retention rates, acquisition costs, and member satisfaction surveys. Data on the number of members who upgrade to higher tiers or add-on services can also be helpful in understanding the value that members place on different offerings.

In terms of digital education, associations should track the number of course enrollments, completion rates, and overall revenue generated from the education program. It's also important to survey participants to gather feedback on the quality of the education, relevance of the content, and overall experience.

For events, associations should review attendance rates, revenue generated from ticket sales and sponsorships, attendee feedback, and any additional revenue streams such as exhibitor or vendor fees. Understanding the ROI for each event can help guide pricing and value decisions for future events.

Finally, for sponsorship, associations should analyze the number and quality of sponsor leads generated, as well as the overall revenue generated from sponsorships. Additionally, conducting sponsor surveys to gather feedback on their experience and the perceived value of their investment can inform future pricing and value strategies. Overall, regularly reviewing data on product and service performance is crucial for associations to ensure they are delivering value and meeting their organizational goals.

Step 3: Value Analysis

Value analysis is a crucial part of any product review, and the approach may vary depending on the product and audience type. Generally, member-facing initiatives require a survey followed by focus groups for specific segments, while sponsor-facing initiatives benefit from 1-1 interviews. This tailored approach ensures the data gathered is relevant and useful for making informed decisions on product value.

To ensure consistency and accuracy across all surveys, we have provided templates for value analysis surveys and focus groups. Surveys should include essential information such as name, email, and the possibility of follow-up for cross-populating relevant data back into our systems, like demographic answers into our AMS. Focus groups should be scheduled by segment type to better focus on their answers and thoughts on the value we deliver and the necessary adjustments needed.

In addition, 1-1 calls should concentrate on identifying where we are delivering the most value and where we can improve, with requests for feedback and suggestions.

It is essential to note that marketing should be ready to deploy emails for surveys and focus group invitations to avoid any delays in this work.

Once we complete this phase, we will hold a meeting to discuss the results and potential value adjustments we will commit to. This meeting will provide an opportunity to ensure all stakeholders are aligned and understand the next steps to take.

Step 4: Pricing Analysis

To complete the pricing analysis phase, a final round of surveys will be conducted using the templates provided below. This round may include open, closed, or both types of surveys, depending on the department head's discretion and approval timeline constraints. It is recommended to conduct both types of surveys for best practices. The survey templates will aid in gathering feedback on pricing strategies from various perspectives. After the surveys are completed, the data collected will be analyzed to identify trends, insights, and areas for improvement. The results of this analysis will be presented to stakeholders to determine any necessary adjustments to the organization's pricing strategy.

Step 5: Final Recommendations

The Annual Product Pricing and Value Review will incorporate all the data gathered in the previous work, and the aforementioned considerations will be taken into account while conducting the review. Pricing recommendations will be suggested based on the analysis, including bundling opportunities and value adds. The value propositions will also be evaluated and adjusted if necessary. Marketing funnel recommendations will be made to improve the customer experience and increase conversion rates.

Finally, an annual plan will be developed to ensure continual customer feedback, analysis, and adjustments to pricing and value propositions. This plan will help the organization stay on track and maintain an ongoing process for product pricing and value analysis. The Annual Product Pricing and Value Review will be an essential tool for the organization to stay competitive and provide the best possible value to its customers.