Full article: https://www.pricingsociety.com/post/five-ways-pricing-teams-can-shape-sustainability-strategies
Sustainability is becoming a primary concern for top-level executives. As companies prepare for a surge in regulations and requirements, they face a decision: adopt sustainability measures solely for compliance or use them to gain a competitive edge. This decision is crucial, with significant implications. Stakeholders, including consumers, investors, shareholders, and regulators, are closely monitoring companies' actions.
For businesses that view sustainability as a strategic differentiator, collaboration with all go-to-market teams, including the pricing team, is essential. The article highlights five ways pricing teams can influence sustainability strategies:
Engage Other Teams: Pricing teams should involve other departments in sustainability discussions, ensuring a focus on customer implications and go-to-market strategies. This approach ensures sustainability isn't solely an internal matter but connects with marketing, pricing, and sales.
Customer-Centric Strategy: While many sustainability programs emphasize technology, reporting, and materials, the strategy should be customer-centric. It should address how sustainability benefits customers and contributes to their bottom line.
Showcase Monetization and Pricing Tools: Tools like segmentation, business model innovation, pricing research, and value-based selling, already in the pricing toolbox, can be adapted to sustainability topics and integrated with go-to-market strategies.
Lead ROSI Calculation: Return on Sustainability Investments (ROSI) is a new metric that justifies sustainability programs to top executives. Pricing teams can help customers understand their ROSI using Total Cost of Ownership (TCO) and EVE® models.
Create a Monetizing and Pricing Sustainability Workstream: The sustainability strategy should emphasize monetization and pricing. Pricing teams can advocate for this focus with key company leaders, either through a dedicated workstream or a taskforce.
In conclusion, while pricing teams were often sidelined during digital transformations in the past, they now have a unique opportunity to lead sustainability monetization strategies. Proactivity and assertiveness are crucial for these teams to make their mark.
How can companies ensure that their sustainability strategies are not just for compliance but also provide a competitive advantage?
In what ways can pricing teams adapt their existing tools and strategies to the realm of sustainability?
How will the introduction of ROSI as a metric change the way companies view and invest in sustainability initiatives?