CEO Strategy Questions
Integrating Simon-Kucher & Partners’ nine-rule approach to monetizing innovation into a company’s DNA should start from the top. For chief executives, this integrated framework’s true potential can only be realized if you commit, body and soul.
In Monetizing Innovation, authors Madhavan Ramanujam and Georg Tacke provide readers with actionable chapter summaries – with accompanying questions and insights to dramatically improve the odds of your new-product success – so you, too, can implement the monetizing innovation framework.
Check out the sample summary from Chapter 4, “Have the ‘Willingness-to-Pay’ Talk Early,” below.
The most important aspect of moving to a “design the product around the price” innovation process is determining as early as possible whether customers value your innovation and would pay for it. You can only determine customers’ willingness to pay (WTP) by actually asking them—not by imagining what they will say. Two pieces of information are critical in this phase: customers’ overall WTP for a product (the price range they have in mind) and their WTP for each feature (so you know which features matter most and which don’t matter at all). Five types of research questions will help you get these answers: direct, purchase probability, most–least, build-your-own, and purchase simulations. Best practices in having these discussions include positioning them as “value talks” (not as pricing discussions), expecting key insights to come from the simplest questions, mixing structured with unstructured questions, and not relying solely on quantitative data.
- Does our product development team have serious pricing discussions with customers in the early stages of the new product’s development process? If not, why not?
- What data do we have to show there’s a viable market that can and will pay for our new product?
- Do we know our market’s WTP range for our product concept? Do we know what price range the market considers acceptable? What’s considered expensive? How did we find out?
Find these and more CEO questions in Monetizing Innovation: How Smart Companies Design the Product Around the Price.