Pricing Analyst: 6 Hallmarks of A Standout Pricing Team
Pricing Analyst:6 Hallmarks of A Standout Pricing Analyst Team
Are you setting up a new pricing analyst capability?
Have your pricing analysts lost their way – struggling to transition to a new way of operating and slow to identify new revenue and margin opportunities?
Do you want to know how to set them back on the track to high performance?
Defining what a high performing pricing analyst hire looks and sounds like is not easy: Pricing and revenue management is a fast, evolving discipline. It can be difficult to define the qualities, skills and traits required to generate profitable revenue growth – especially in highly competitive and often disrupted markets.
And many job descriptions don’t quite get it right either…
If you look at Australian job boards, for instance: The majority of job ads describe pricing analyst roles as either a mass of daily operational tasks or data management duties. Sometimes it seems like you’re reading a job ad for a finance manager or junior accountant – not a pricing analyst or manager.
Vague or inaccurate job descriptions broaden skills gaps
So in this article, I’m going to examine what it really means to have a world-class pricing analyst capability, what elements you should include in your pricing analyst job description, the value pricing analysts bring to your organisation, and what HR initiatives are required to improve your pricing analyst capability and drive 10% – 15% EBIT growth in 2019/20.
I will argue that the best pricing analyst in Australia exhibits 3 important characteristics:
- Domain price mastery
- Diversity of analytical thinking
- Stakeholder engagement
The main content here is: That pricing analyst job descriptions tend to be narrowly defined with a focus on technical skills. What’s more, they seem to be getting narrower instead of capturing the broader skills required for today’s pricing analyst.
What is a Pricing Analyst in 2019/20?
To understand what constitutes a high performing pricing analyst in 2019; you’ll first need to know some pricing analyst job description basics. Here’s a short overview:
- The role of a good pricing analyst is to support the pricing leader to make more revenue and margin.
- Their core responsibilities are managing and analysing a whole range of data and information sources to identify previously unrealised revenue, pricing and margin opportunities.
- The mission is to find your business low-risk revenue, pricing and margin opportunities so that you can accelerate earning growth using safe and innovative pricing strategies.
- Their management style is to work laterally across an organisation to achieve shared goals and deliver incremental EBIT growth in 3, 6 9 monthly intervals.
Changing Pricing Analyst Roles and Responsibilities
While today’s fashion favours pricing analysts with an accountancy or finance background or the latest Big Data skills, this is not wholly accurate. And, in many respects, a misleading view of the role of pricing analyst in 2019/20.
Here’s are some of the more relevant analytical thinking styles and skills to consider for the future:
- Customer Value Driver Analysis
Yes, pricing analysts use quantitative and qualitative methods to analyse competitor pricing, assess market share and margins. But they also seek to understand why a customer values your products and services to inform strategy and segmentation? Understanding customer value is the secret source to unlocking your pricing power.
- Demand Forecasts & probability models
Yes, pricing analysts refer to a variety of statistical modelling methods to prepare reports, identify revenue and margin opportunities. But they shouldn’t necessarily be creating them, but rather identifying key trends and dismissing irrelevant/misleading data.
- Commercial pricing and marketing strategies
Pricing analysts also work closely with sales and marketing teams to develop competitive pricing strategies. However, they are not there to be a barrier to growth – i.e., the pricing policeman. Pricing analysts are there to make it easier for sales teams to win more deals. They should be providing tools, advice and insights to deal with procurement; win profitable deals and inform sales and marketing efforts.
Competitive Intelligence & Industry Trends
Yes, Pricing analysts are always looking for patterns and trends in data. Analysts’ wants to make connections that grow the share of the pie and wherever possible increase share of wallet. They are focused on price and value differentials in the market. Pricing Analysts’ are not there to build dashboards from scratch.
- Pricing Tools
Can also develop quoting tools and contract modelling tools if they help sales or category teams yield more profitable price points, deals and transactions. And will even develop business development dashboards if this means generating more profitable deals. They are not there to build overly complicated price models and data tools to 99.9999% accuracy especially – especially if no one else can or wants to use them.
- Storytelling & Presentation
Yes, pricing analysts need to be able to tell a story with data so that other people get motivated to capture new revenue and pricing opportunities too. Pricing Analysts also need to be good at formulating a convincing argument to make sense of their findings. They’re not there though to hammer stakeholders with numbers and facts. They need to be able to read a room and understand when a message is getting through or not. Can be able to adjust their style and message accordingly.
- Softer skills are vital because they affect overall job performance. In fact, research shows that exceptional analysts are 300% more productive than average analysts; and 1 1/2 times better than core performers and 900% more productive than poor performers
- Pricing analyst with higher levels of domain price mastery and analytical thinking are measurably better than novices; with limited pricing knowledge and a long list of technical skills or sales or finance experience.
- The majority of pricing titles and job descriptions are detrimentally reshaping the pricing workforce and lowering the talent benchmark.
It’s time to re-define high-performance pricing and bring together the absolute best pricing leaders, and pricing analysts to drive business strategy and new cultural norms.
Having the right pricing analyst capability on board can mean securing an additional 2% – 4% profit in the bank.
Not having the right pricing analyst capability can mean missing out on 1-2% of margin every year.
Or, feel free to call me on (2) 91994523
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