In the price improvement strategy, firms develop the organizational capabilities to manage prices better. Pricing and discount management processes are developed. People are hired to drive those processes. Tools are acquired to accelerate achievements. Cultures are changed towards a profit and discount cautious mentality.

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There are other fields – like airlines and hotels – where providers have invested heavily in customer loyalty programs. Here these programs are effective as long as the provider can fly to the right destination of the hotel company has a property there. When that is not the case, the customer seeks other choices and may be attracted into competitors’ customer loyalty programs.

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The fundamental concern for service-based businesses is that each project is different and requires some variance in price and components. The vogue of productizing service offerings alleviates some of the natural envy toward product brands that can quickly adapt to the widening range of consumer demand, but that presents its own hurdles.

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