Feb 3, 2020
Why you have to check out today’s podcast:
- Understand how Data Science helps in pricing
- Find out the disconnect between product managers and data scientists in terms of pricing a product
- Discover why pricing work better with data analytics allowing you to compare and assess different strategies
Neil Biehn is the Vice President of Business Analytics at Siemens Healthineers. He has over a decade of experience in analytics, segmentation, sales effectiveness, and pricing optimization. Neil’s specialties include Analytics, Segmentation, Revenue Management, Price Optimization, Operations Research, Willingness-to-Pay, and Data Science.
In this episode, Neil shares with us how Data Science helps in pricing. He also deep dives into why pricing works better with data analytics allowing you to compare and assess different pricing strategies.
“Profit as a guide for price is limited and should be used only if it is in line with the strategy of a company. You are willing to lose customers to maintain a profit margin, ultimately, your customers don’t care about your profits, they care about the price of your services or materials or any products. Let Finance worry about running your profits.”
– Neil Biehn
Get COV’s Pricing Metrics:
The Most Important Pricing Decision in a Subscription Business Course at https://www.championsofvalue.com
Topics Covered:
01:22 – How his path in Pricing started
04:38 – A description of his current job
05:45 – How does he describe the relationship of “business people’ in an organization with ‘data science people’
10:17 – Logical comparison of the engineering team with the data science team
13:40 – A look at one case study of coming up with good pricing at Siemens
19:25 – How does he help solve a company’s price erosion problem
20:24 – His one valuable pricing advice
22:10 – How it looks like finding a solution to problems the data science way
Key Takeaway:
“If you have data and have the facts, why wouldn’t you use it? Every single data point you have about price, every purchase someone makes at a price point will give you an unbelievable wealth of information and you should use it.” — Neil Biehn
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