PriceGain is participating in a research project led by KTH (The Royal Institute of Technology). The project is financed by Vinnova and will run for two years with other companies participating. The purpose of this project is to test, analyze, and develop methods for customer involvement in the pricing process of B2B digital offerings.
About the project
There is a clear need for industrial companies to develop their working methods to better understand the value and pricing of new digital offerings. The challenge of pricing digitally based offerings so that they create financial sustainability is a key factor for the success of the digital transformation.
When it comes to developing new products and services, most industrial companies tend to involve customers systematically. But when pricing and developing revenue models, very few companies involve customers this way.
The project focuses on increasing knowledge about and developing working methods for: (a) how new digital offerings are to be combined (i.e. how functions and values in an offer work together and how to price the respective module and its entirety) and (b) how value uncertainties in digital offerings are to be handled, including difficulties in anchoring and communicating value and pricing completely new offers when comparison objects (references) for the customer are irrelevant or missing completely. Many digitally based offers increase in value over time as the service itself becomes better (more data becomes available and/or the number of users increases). Therefore, within the framework of the project, we also intend to investigate the impact of the price logic within the service when the value changes over time.