But how do both parties arrive at a price that is deemed equal to the value delivered by the product or service? Pricing today is rooted in relationships and is personalized for a “segment of one” rather than being a one size fits all figure. And negotiation is an integral part of the final pricing of any banking offering. Consequently, a relationship-based approach custom designed for a customer to deliver the best value at the best price must be available. Personalization ~and transparency will define relationship-based discounting in the years to come.
Like pricing and offers, discounting too should be managed on a state-of-the-art tech platform that can standardize practices including managing the discounts that are offered. Deal management alongside pricing and revenue management platforms can be used to establish the range of negotiability based on pre-decided rules and conditions.
With this deal management in place, the sales manager has the freedom to try different offers and price points within a larger pre-defined framework. The process is structured and is based on a standardized process which includes multi-level approvals. This model ensures customers are not given a higher or lower discount. It is purely based on the value the customer provides to the bank.