Possibly my single favorite KPI in the world of pricing is average selling price. Are we managing average selling price per product, average selling price overall across the portfolio.
If you have a single product that has a price on it and you can monitor that average selling price, that gives you a great indication of what’s going on in your marketplace, how well we’re selling value.
If you can monitor average selling price by salesperson, now we’re getting a great indicator of which salespeople do a good job at selling value and which ones don’t.
If you can’t manage average selling price, maybe you’re going to have an average deal size. How big are the opportunities that we’re facing, that we’re being able to bid on? And which ones of those are we winning or not?
“Possibly my single favorite KPI in the world of pricing is average selling price.”
– Mark Stiving
But my recommendation, find some KPI, maybe two or three, that are a great indicator of how well our customers are perceiving our value, which means their willingness to pay and how well our salespeople are selling value. Track them over time. Watch for the anomalies. Watch for the changes. And use those as indicators to see if you can figure out what’s going on in your marketplace.
We hope you enjoyed this memecast. This impactful insight came from the book, Selling Value, which I wrote to help salespeople win more deals at higher prices. If you have any questions or feedback, please email me [email protected].
Now, go make an impact.
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