Pricing Maturity Model
This following figure presents the different stages of enterprise pricing maturity, key characteristics of each stage in terms of processes, strategy, organization, KPIs/incentives, tools, and margin improvements typically recorded when successfully jumping from one stage to the next one..
Most enterprises are still in the “Chaotic” stage with limited or no control of their pricing processes. To reach pricing excellence enterprises should go step by step. For example an enterprise in the Chaotic stage should first reach the Disciplined stage and then the Differentiated stage before going to the “Optimized” stage. Enterprises shall improve all factors of pricing maturity (processes, strategy, organization, incentives/KPIs and tools) to progress and reach excellence.