Measuring Pricing Effectiveness: The Process (Part 2 of 2)
Deciding what metrics to measure leads to the next big issue: How to Measure. Often the problem is not so much in the measuring but in the comparison. Measuring the revenue is only useful if you can compare it to a baseline of revenue to know whether the result is good or not. Summarized, there are four basic techniques, each with advantages and disadvantages: Test and Control: Typically execute new pricing in some locations while using the legacy process in others.