[[{"@context":"http:\/\/schema.org","@type":"Answer","text":"Value-based pricing is the organizational strategy of adjusting prices based on the consumer\u2019s perceived value of a product or service. In other words, what is the customer willing to pay?","name":"What is value-based pricing?","@id":"https:\/\/www.the-future-of-commerce.com\/2023\/12\/14\/what-is-value-based-pricing-definition-strategies-benefits\/#Answer1"},{"@context":"http:\/\/schema.org","@type":"Answer","text":"
  1. Value is customer specific<\/li>
  2. Value is relative to the next best alternative.<\/li>
  3. Know thy market<\/li> <\/ol>","name":"3 pillars of value-based pricing","@id":"https:\/\/www.the-future-of-commerce.com\/2023\/12\/14\/what-is-value-based-pricing-definition-strategies-benefits\/#Answer2"},{"@context":"http:\/\/schema.org","@type":"Answer","text":"
    1. Fast iterations<\/strong> deliver faster outcomes and enable quick adjustments to pricing strategies<\/li>
    2. Test and validate hypotheses at scale<\/strong>; adapt pricing strategies to evolving market conditions<\/li>
    3. Create capacity<\/strong> by empowering teams to tackle bigger problems. Automation improves the quality and speed of decision-making<\/li>
    4. Identify new sources of value<\/strong> and understand the driving forces behind business success<\/li> <\/ol>","name":"role of proxy data in price management ","@id":"https:\/\/www.the-future-of-commerce.com\/2023\/12\/14\/what-is-value-based-pricing-definition-strategies-benefits\/#Answer3"},{"@context":"http:\/\/schema.org","@type":"BlogPosting","publisher":{"@type":"Organization","contactPoint":"https:\/\/www.the-future-of-commerce.com\/#ContactPoint","legalName":"The Future of Commerce","parentOrganization":"https:\/\/www.sap.com\/index.html#Organization","numberOfEmployees":"https:\/\/www.the-future-of-commerce.com\/#QuantitativeValue","logo":{"@type":"ImageObject","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/themes\/hybris_foc\/assets\/images\/layout\/logo-foc-2x.svg","height":"96","width":"293","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/themes\/hybris_foc\/assets\/images\/layout\/logo-foc-2x.svg"},"address":{"@type":"PostalAddress","name":"The Future of Commerce","addressCountry":"https:\/\/www.the-future-of-commerce.com\/#Country","addressLocality":"Newtown Square","addressRegion":"PA","postalCode":"19073","streetAddress":"3999 West Chester Pike","@id":"https:\/\/www.the-future-of-commerce.com\/#PostalAddress"},"url":"https:\/\/www.the-future-of-commerce.com\/","alternateName":"The Future of Commerce and Customer Engagement","additionalType":"news media","name":"The Future of Commerce","description":"News, information, and analysis on the future of commerce, including e-commerce, customer engagement, B2B, B2C, DTC, supply chain, sustainability, and purpose.","sameAs":["https:\/\/www.linkedin.com\/groups\/4844282","https:\/\/podcasts.apple.com\/us\/podcast\/a-call-for-a-better-experience\/id1479742201","https:\/\/twitter.com\/FutureOfCEC","https:\/\/www.the-future-of-commerce.com\/feed\/"],"@id":"https:\/\/www.the-future-of-commerce.com\/"},"keywords":["Chief Revenue Officer | CRO","SAP Partners","Pricing","Omnichannel Retail","Wholesale Distribution","Revenue","Dynamic Pricing"],"sameAs":"https:\/\/en.wikipedia.org\/wiki\/Value-based_pricing","url":"https:\/\/www.the-future-of-commerce.com\/2023\/12\/14\/what-is-value-based-pricing-definition-strategies-benefits\/","mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2023\/12\/14\/what-is-value-based-pricing-definition-strategies-benefits\/","name":"What is value-based pricing: Definition, strategies, benefits","headline":"What is value-based pricing: Definition, strategies, benefits","datePublished":"2023-12-14","description":"Value-based pricing is an effective way for companies to set prices, but isn't easy. 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Value-based pricing is one way businesses tackle the challenge. It\u2019s an effective method where businesses can recognize the opportunity to capture the value they generate for customers. 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