COVID-19 has changed the mindsets and behavior of hundreds of millions of people in a matter of weeks. As global challenges continue to unfold, nearly every business will need to adapt to sharp shifts in demand, low consumer confidence and the effects of social distancing.
Many companies have cut prices to address volume and share erosion and other immediate challenges, while some are raising prices to account for shortages of raw materials, parts or labor. But temporary price adjustments like these will not be enough to help many firms withstand a prolonged health crisis in the U.S. or multi-quarter global recession.
We believe that to build resiliency and succeed in the longer term, they will need to rebuild pricing strategy based on a new understanding of demand and competitive position – while demonstrating empathy and building trust with customers and other stakeholders.