Price and Incentive Management


Desired Outcome and Scope

When it comes to price and incentive management, it is important for businesses to have their desired outcomes in mind. These outcomes determine the scope of customers and products, and appropriate strategies. Desired outcomes may include:

  • Expanding product penetration within your customer base
  • Growing customer base
  • Increasing recurring revenue over event-driven sales
  • Pulling revenue forward from one quarter to another
  • Raising margin

Price and Incentive

When determining product prices and incentives, you should refer to your overall go-to-market (GTM) strategy. These factors are industry and channel-specific, therefore, isolating the change to either factor ensures a desired and measurable outcome.

Behavior Management

Your chosen strategy will bring about certain behaviors. These behaviors need to be measured over time, as opposed to a single point in time.

  • Existing contracts, quotes, and orders may mean that sales do not reflect price increases
  • Product returns after the incentive period may mean that customers deliberately bought just enough to receive the discounted price–with the full intention of returning what they did not need for a refund
  • Incentives may inadvertently pull sales forward to the incentive period but then result in a revenue decrease immediately following

Clear iQ’s Approach to Price and Incentive Strategies

Clear iQ works with organizations to understand their desired outcomes and develop the right price and incentive strategies. To do this, we:

  • Work with your teams to determine targeted outcomes
  • Develop sales and revenue analytics to baseline sales and revenue before any changes and measure the results
  • Provide interim reporting to measure success or failure during incentive periods and not simply after the incentive ends
  • Build playbooks for your sales team to understand the strategies
  • Work with marketing teams to promote the price and incentive performance

What do you think? Contact Us.

Clear iQ had the creative vision and strategic mindset at a level that I haven’t seen before.
They don’t fall into the typical consultant mode where they’d present, hand-off, and run away, leaving the client team with people who might not know how to deploy.
We couldn’t have selected a better vendor, lifelong business partner, mentor, and coach.
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