By: Kirk Jackisch, President, Iris Pricing Solutions
Pricing leaders operate in an environment where decisions must be driven by data, yet data alone rarely compels action. As Nobel laureate Daniel Kahneman noted, “No one ever made a decision because of a number. They need a story.” While pricing analytics provide critical insights, the ability to translate those insights into a compelling narrative is what ultimately secures buy-in from stakeholders and drives pricing excellence.
However, many organizations continue to struggle with integrating analytics into strategic decision-making. The challenge is not a lack of data but rather the inability to connect data to a meaningful business impact. Without this connection, pricing initiatives risk being seen as theoretical exercises rather than actionable levers for enterprise growth.
The Role of Simplicity in Pricing Narratives
A common misstep in pricing communication is overwhelming stakeholders with excessive data. Even in analytically mature organizations, simple tools like scatter plots can be instrumental in making insights more accessible. Leaders must resist the urge to present exhaustive models and instead focus on delivering clear, intuitive visuals that support a compelling narrative. The real measure of success is whether decision-makers can understand and act on the insights presented.
Framing Pricing as a Value Driver, Not Just a Cost Change
Pricing discussions often encounter resistance because they are framed as cost adjustments rather than strategic levers for enterprise value creation. This misalignment can lead to pricing decisions that are shortsighted, focusing solely on cost-cutting rather than long-term profitability.
To gain executive alignment, pricing professionals must articulate the business impact of pricing decisions beyond revenue generation. There is also a school of thought that talks about how the absence of price changes negatively impacts the health of a market—depressing profits and inhibiting innovation and investment:
- How pricing changes enhance customer value and competitive positioning.
- The broader financial impact of pricing goes beyond short-term margin optimization.
- Long-term strategic objectives, such as market expansion, product positioning, and portfolio optimization.
Failure to do so can result in reactionary pricing tactics that erode brand equity, reduce market share, and create inconsistency in customer perception.
Balancing Rational and Emotional Factors in Pricing Decisions
Pricing is often viewed as a purely rational exercise, but successful pricing strategies recognize that stakeholders are influenced by both logic and emotion. While finance teams prioritize margins and cost structures, sales teams respond to deal velocity and customer impact. Executive leaders, meanwhile, seek alignment with broader strategic objectives.
Organizations that fail to incorporate the emotional drivers of decision-making risk internal resistance, misalignment between teams, and ultimately, suboptimal pricing execution. To influence both perspectives effectively, pricing teams must:
- Craft a dual-layered story that integrates logical data-driven insights with a compelling business narrative.
- Understand stakeholder motivations and tailor messaging accordingly.
- Leverage real-world case studies to illustrate the tangible impact of pricing decisions.
- Establish credibility through consistency in how pricing decisions are framed and communicated across functions.
- Level 1: Pricing under a commercial team – Easier to position as a driver of growth and customer strategy.
- Level 2: Pricing under finance – Often viewed primarily as a cost-management function focused on margin preservation.
- Level 3: Pricing under marketing – Aligns pricing with brand positioning and customer perception, ensuring consistency between pricing, messaging, and competitive differentiation.
- Level 4: Pricing as a standalone function – Provides cross-functional integration and independence but may struggle with influence without strong executive backing.
- Level 5: Pricing under the CEO – Embeds pricing into overall business strategy, maximizing strategic impact and positioning it as a core driver of corporate performance.
The placement of pricing within an organization determines how it is perceived and the level of influence it commands. When embedded within commercial teams, pricing aligns closely with revenue growth, making it easier to integrate into market-driven decision-making. Finance-led pricing functions, however, often struggle to be seen as more than a cost-control measure, limiting their ability to influence broader business strategy.
Meanwhile, organizations that place pricing under marketing benefit from a customer-centric approach, but may lack the necessary authority to drive hard financial outcomes. Similarly, pricing as a standalone function can ensure cross-functional collaboration, yet without executive sponsorship, it risks being seen as an advisory unit rather than a core strategic pillar.
The highest level of influence comes when pricing reports directly to the CEO, signaling its centrality in shaping business strategy, revenue models, and long-term profitability.
To maximize effectiveness, pricing teams must bridge the gap between commercial, financial, and strategic priorities, ensuring that pricing decisions support both value creation and margin management. Establishing clear cross-functional collaboration and securing executive sponsorship are critical to elevating pricing from an operational function to a strategic enabler of enterprise growth.
Finding and Structuring the Right Pricing Story
Identifying the most compelling pricing story is akin to “finding a needle in a haystack.” However, organizations can accelerate this process by leveraging the right frameworks, tools, and storytelling techniques—the metaphorical “big magnet” that attracts the most impactful insights.
To strengthen pricing narratives, organizations should develop a structured playbook that ensures consistency in messaging. A pricing storytelling playbook should include:
- Key messaging frameworks to align pricing changes with broader business strategy.
- Templates for data visualization that reinforce core pricing insights.
- Best practices for regular monthly stakeholder engagement to ensure clarity and buy-in across departments.
In addition to a structured playbook, pricing teams must ensure that their communication is both concise and actionable. The 5-15 Rule offers a practical framework:
- 5 minutes to prepare: Pricing teams should distill insights into a succinct, high-impact summary.
- 15 minutes for decision-makers to review: Stakeholders must be able to quickly grasp key takeaways and make informed decisions without extensive analysis.
Without a structured approach to pricing storytelling, businesses risk overlooking critical insights, missing revenue opportunities, and losing competitive advantage.
From Insights to Influence
The ability to craft a compelling pricing narrative is no longer optional—it is essential for organizations seeking to drive pricing maturity and executive alignment. Data remains foundational, but data alone does not inspire action.
Without a strong pricing narrative, organizations risk pricing decisions being deprioritized, misunderstood, or outright rejected by key stakeholders.
At Iris Pricing Solutions, we specialize in helping organizations transform their pricing strategies into compelling, data-driven narratives that secure buy-in and drive measurable impact. Our expertise in pricing analytics and storytelling ensures that your pricing initiatives are not only understood but embraced across your organization.
Are you ready to elevate your pricing strategy? Contact us to explore how strategic pricing storytelling can become a competitive advantage for your organization.
