What are the best practices for training pricing champions across different functions and levels?

Pricing approaches vary by organisation but generally draw champions from 4 functions. Operations and Commercial to provide supply and demand data, Finance to convert data into information and the Directorate to provide oversight and ensure decisions are inline with the overall business strategy. Collaboration is key and pricing can be run either as a project, process or combination of both.

Look for individuals that are very strong at first principles thinking. They must understand 'the why' behind the company's pricing structure to be a positive influence on others in the organization. They may be asked, "Why can't I just do it this way?" by a peer or colleague. A bad pricing champion might say, "Because that's against the rules." This response shuts down the conversation and discourages new thinking in the organization. The best pricing champions seek to deeply understand the question and the motivation for it and then provide a thoughtful answer that explains the benefits/detriments of the proposed approach compared to the organization's pricing policy as well as logging the idea for future consideration.

Pricing champions can emerge from any department within your organization – open the aperture & support conversation & collaboration. Some conversations to encourage: Sales – Discuss pricing flexibility, discount strategies, & the impact on closing rates. Customer success – Evaluate the impact on customer loyalty & identify upsell opportunities. Development – Discuss the value of different product features & their price. Finance – Assess the implications of different pricing models & ensure they align with goals. Each of these departments has a unique perspective to pricing, the value you bring to the market as well as the client experience. These individuals can often connect the dots, have a passion for pricing & act as influencers.

In my experience, it is helpful to start with two buckets. The first bucket are the folks within the pricing function or team, who have the influencing skills and credibility potential to reach effectively across other functions and into senior leadership ranks. The second is people in other functions or senior leadership: strong believers in the value of pricing and are natural allies for organizational change projects, budget and talent allocations, ready to recognize the contributions of pricing to their own success. Next, you get every opportunity for osmosis and collaboration that purposefully advances their growth and success, and promote recognition for successful collaborations ... until the two buckets become hard to tell apart.

Best Characteristics of Pricing Champions: -Passionate about value: They understand the connection between pricing and capturing the true value of what your company offers. -Cross-functional thinkers: They see the big picture of how pricing influences sales, marketing, finance, and operations. -Influential & communicative: They build trust across teams and effectively advocate for pricing strategies. -Data-driven: They use insights from analytics and market research to support pricing decisions. -Open to learning: They're curious and proactive in developing their pricing expertise.

Identifying price champions is more than just selecting influential people; it’s about finding those truly invested in pricing strategy. These individuals bridge the gap between vision and execution, influencing teams to adopt new pricing approaches. It's crucial to nurture their potential with the right resources and ongoing learning. Without champions, even the best pricing strategies can fail due to lack of internal alignment. For example, in Procter & Gamble, internal champions ensured the successful transition to a value-based pricing model.

Identifying and empowering pricing champions can transform your organization's pricing strategy. For instance, a mid-level marketing manager who consistently provides insightful feedback on pricing projects and demonstrates strong collaboration skills can become a pivotal advocate for pricing excellence. By recognizing and developing such individuals, you not only enhance their professional growth but also create a network of passionate pricing advocates who can drive change, share best practices, and foster a culture of strategic pricing. This approach ensures that your pricing vision is effectively communicated and implemented at all levels, leading to more informed and agile pricing decisions.

Identify potential pricing champions in each function and level. They are passionate about pricing, willing to learn and share, and positively influence others. Select champions based on criteria like pricing project involvement, feedback, collaboration, and alignment with pricing goals. They don't have to be the most senior or experienced, but rather those who are enthusiastic and effective.

Training pricing champions is critical for implementing effective pricing strategies across different levels. At White Internet Consulting, we blend online and offline learning tailored to distinct roles, emphasizing value-based pricing and negotiation skills. Key to our approach is hands-on simulations and real-world case studies that challenge our team to apply pricing concepts directly. Regular feedback and recognition not only enhance skill acquisition but also boost motivation. This tailored, engaging training ensures our pricing champions are well-prepared to optimize pricing strategies and drive sustainable business growth.

Below are a few techniques I have implemented: Cross-Functional Workshops: include participants from various departments to foster a holistic view of pricing strategies Mentorship: to provide guidance & share best practices Regular Training: pricing theories, market analysis, & customer segmentation Analytical Tools: provide training on using pricing/financial analysis tools to evaluate the impact of different pricing strategies Performance Metrics: define metrics for pricing initiatives & train champions to track & analyze them Industry Trends & Insights: share industry trends, competitive pricing strategies & market conditions Customer Interaction: encourage customer interaction to gain insights into value perception & pricing sensitivity

Pricing Champions have different skills and perspectives. Operations generally look inward focussing on outputs for given resources. Commercial look outwards examining markets, customers and competitors. Supply data tends to be factual while commercial can be more subjective. The finance team converts data into information. The challenge of resolving factual vs subjective data is addressed through scenario planning. Metrics such as margin or return are shared. Collectively these three teams can recommend pricing and offer alternatives to the Directorate. The skill sets for these Champions vary but naturally fall within their professions. The key is the Directorate sharing strategic objectives, facilitating the process and provide challenge.

I agree, except long bucket lists like this are potentially disorienting and overwhelming. I would start with ensuring some of these pricing champions have access to mentors inside or outside the company that are a couple of legs up the ladder of experience, or bring completely different perspectives yet have accomplished a great deal of pricing-driven success. Use ideas from multiple mentors and each champion's manager to narrow what this person should best learn next. It could be how to find and connect with mentors who are not all from the "same school" as to how to develop a pricing champion! Finally, one of the best way to train leaders it to have them teach what they know ... give internal workshops, present at conferences, and more.

Price champions are the driving force behind effective implementation. In Adobe’s shift to a subscription model, internal champions advocated for the change and educated teams about its long-term benefits. By empowering these individuals with resources, authority, and recognition, companies can ensure smoother transitions and stronger alignment. Champions not only promote new ideas but also foster a sense of ownership, leading to improved performance and sustained success across pricing strategies.

Investing in the training of pricing champions can lead to significant improvements in your pricing strategy. For example, consider a company that implemented a comprehensive training program for its pricing champions, focusing on value-based pricing and pricing analytics. As a result, these champions were able to identify and leverage new pricing opportunities, leading to a 15% increase in revenue within the first year. By tailoring the training to their specific roles and providing continuous feedback and recognition, the company not only enhanced the skills of its pricing champions but also created a motivated and cohesive team capable of driving strategic pricing decisions.

Train pricing champions in core pricing concepts and skills. Can also use a mix of online and offline methods like e-learning, webinars, and workshops. Tailoring training to their needs and roles, covering topics like value-based pricing and analytics will be more effective. Provide regular feedback and recognition to reinforce their learning and motivation.

To engage, motivate & celebrate your pricing champions I recommend the following approaches. Offer incentives for contributions. Use collaborative tools & platforms to facilitate communication & idea-sharing across departments. Empower decision-making through authority to make decisions & implement changes within the pricing strategy framework. Invest in continuous learning opportunities, such as workshops, seminars & industry conferences, to keep pricing champions informed & inspired. Create feedback loops to provide & receive feedback on pricing initiatives & their outcomes. Highlight and celebrate the successes and impact of pricing champions in organizational communications and meetings.

Incentives and recognition are critical to engagement over the long term, especially for a function like pricing that is often an "orphan" function that nobody owns or protects, but everyone has opinions (and fears) about. Whatever visible avenues your organization has (awards, promotions, etc), as a leader you should have a radar vision for each of your pricing champions can hit their "preparation meets opportunity" moments to shine inside the organization. Learning that they can impact outcomes and graduate from tactical to strategic partners recognized by leadership is in my experience very effective.

If you don't have a pricing team, having a pricing committee who truly owns pricing decisions is key to driving internal engagement. I've noticed a few patterns among the most successful pricing committees: 1. There is someone at the table from Product, Marketing, Sales, and Finance. 2. There is a a clear leader, who has been tasked with driving the conversation. 3. There is a common vocabulary shared across the entire team, so discussions are rooted in a common language. If you check these 3 boxes, you should have no problem engaging your pricing champions and having productive discussions.

-Emphasize the "Why": Articulate pricing's strategic impact on profitability, customer value, and overall business success. -Collaborate on Decisions: Include them in pricing discussions, strategy meetings, and projects. Value their diverse insights. -Boost Visibility: Recognize their contributions and give them a platform to share knowledge and mentor others. -Two-Way Communication: Actively seek their feedback, listen to their ideas, and address any concerns. -Offer Challenges: Assign them ownership over pricing initiatives to demonstrate trust and help them grow their skills. -Reward & Recognize: Celebrate their wins with both formal and informal recognition – bonuses, development opportunities, or even simple praise.

Integrating pricing champions can elevate your pricing strategy's effectiveness. For instance, a multinational company formed cross-functional pricing committees that included champions from marketing, sales, finance, and operations. This collaborative approach led to the development of a more dynamic pricing strategy that adapted swiftly to market changes and customer needs. Within six months, the company observed a 10% increase in profit margins and improved customer satisfaction ratings. This success illustrates how engaging pricing champions not only enhances strategic alignment but also drives tangible business outcomes, demonstrating the transformative power of inclusive and collaborative pricing processes.

Engage pricing champions in the pricing process and decision-making. Involve them in strategy development, research, implementation, and performance evaluation. Create cross-functional teams or committees to leverage their expertise and insights. Encourage knowledge sharing, feedback, and support among pricing champions and experts.

Paradoxically, one of the best ways to challenge pricing champions from within a pricing function, is to encourage them to spend time in the shoes of the other functions we serve, or collaborate closely with. Do they empathize with a Product Manager's challenges? With the IT or Analytics professional's full inbox? This can be a real challenge in some organizations where politics often force an inbred esprit de corps inside each function. How often is your pricing champion walking the floor of another team or function building relationships when we "don't" need something from those teams today?

-Data-Driven Insights: Task them with deep market analysis, customer segmentation, or competitor pricing research. Have them translate findings into actionable recommendations. -Scenario Planning: Present complex hypothetical situations (new product launch, economic downturn, etc.). Ask them to devise pricing strategies, considering impacts on cost, demand, and competition. -Cross-Functional Projects: Have them lead initiatives requiring collaboration between sales, marketing, and finance. -Mentorship: Pair champions with new hires or less experienced colleagues to share knowledge and demonstrate advanced pricing techniques. -External Representation: Select experienced champions to speak at conferences or participate in industry events

Challenge pricing champions to grow and innovate in pricing. Expose them to new scenarios, opportunities, problems and ask for creative solutions. Provide access to advanced pricing resources, such as books, webinars, and courses. Celebrate their successes, learn from failures, and reward their contributions to pricing performance and culture.

Encouraging your pricing champions to embrace challenges can lead to breakthrough innovations. For example, a technology company tasked its pricing champions with developing strategies for a new product launch in a highly competitive market. They were given access to cutting-edge pricing resources and encouraged to experiment with different models. The champions devised a dynamic pricing strategy that adjusted prices based on real-time demand and competitor actions. This innovative approach resulted in a 15% increase in market share within the first quarter of the product launch, highlighting the significant impact of fostering a challenging and supportive environment for pricing champions.

An essential part of long-term success should be developing integrity, inclusiveness and effectiveness coping with short-term thinking that often dominates the agenda. Is this a pricing champion who says we don't know when we don't know? Or someone who's an expert bluffer and "make it up as you go"? Does this champion think about what serves the organization and the integrity of their relationships best, and is able to adjust their approach, or a one-speed-only go getter who is rarely a go-giver? Does he bring others along for success and constantly look for opportunities to develop future champions?

In my experience the key is the Directorate / Leadership team who need to share the strategic objectives of the organisation and set the framework for pricing. For example is the organisation looking for market share or maximising margin. Also, are there other constraints or opportunities that the pricing champions might not be aware of.

For us incorporating sustainability into pricing champion development led to more informed decisions, increased collaboration, and heightened employee engagement!

Empowering price champions across diverse functions and levels hinges on strategic alignment and continuous development. Tailoring training programs to specific roles cultivates deep understanding and ownership of pricing strategies. Encouraging cross-functional collaboration fosters a holistic approach to decision-making, leveraging varied perspectives for innovative pricing solutions. Emphasizing ongoing education ensures champions stay abreast of market dynamics, enhancing agility in response to evolving customer needs and competitive landscapes. By nurturing expertise and collaboration, organizations fortify their pricing prowess and drive sustained profitability.

Train pricing champions on core pricing concepts and skills. Engage them in pricing processes and decision-making. Foster knowledge sharing and collaboration among pricing champions. Challenge them to innovate and grow their pricing expertise. Provide continuous support, feedback, and recognition for their contributions.