With Cirquent’s assistance – anchor customer benefits and pricing consistently in your company’s strategic and organisational alignment.

Saturation of the car market and the increasing transparency of products and services demand more customer-oriented competitive advantages. Ultimately, these can be achieved only if product development is aligned precisely to the specific benefits for customers.

However, when it comes to products and pricing, many companies initially base their decisions on production costs. Customers and their requirements are frequently integrated into the product development process only at a later stage – often too late. Moreover, price discovery and pricing for complex products or equipment packages are very complicated processes. It is also difficult to assess the brand value and the brand perception as a driver for the customers’ willingness to pay.

Customer benefits and customers’ opinions should come first

Companies must rethink: They must stop thinking exclusively in terms of the competition and production costs when pricing products and services – and start integrating customers’ opinions and the benefits for customers into their technology and product development processes at an early stage. At the same time, when they are aligning their product portfolio, companies must also take the customers’ willingness to pay into account. In other words: The price strategy should be developed not only in terms of the product and the market, but mainly in a customer-oriented manner. Cirquent offers specific support in this area.

Measure customer benefits and their willingness to pay precisely

• Analysis of product portfolio and technology development: Cirquent analyses the entire product portfolio and the development of new technologies in terms of specific benefits for the customers. For this purpose, our consultants gather primary data (by means of conjoint analyses) and use this to derive the customers’ willingness to pay and purchase-relevant product properties.
• Measuring the strength of the brand: Cirquent measures the brand strength to evaluate its monetary value. Many different aspects are taken into account – such as functional, cognitive and emotional, affective dimensions which, in combination with other features of the products and services, constitute the benefits for customers.
• Market simulations – “Share of Preferences”: To develop customer-oriented price strategies Cirquent carries out market simulations – with consideration of the calculated customer benefits, competitors’ products and prices and the company’s own cost structure.