lean pricing strategy
DESCRIPTION
Pricing is one of the most important aspects of your business with a 1% in price optimization causing an 11% boost in profit. Here's a breakdown of Lean pricing strategy for your marketing team to bring some data and science into your pricing.TRANSCRIPT
@Patticus
Lean Pricing
June 27, 2013
@Patticus
Provide you a quick, analytical process to approach pricing in your business.
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Pricing isn’t hard, it’s a process.
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Let me say again: Pricing is a Process
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There is no silver bullet.
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•The Importance of Pricing
•Positioning
•Packaging
•Pricing (getting the number)
•Tips and Tricks - the last 5%
Our Agenda
Basic Plus Premium
$49 $149 $299
I only have one cool feature.
The same cool feature.
Yup, same one.
Oh! You can only get this here.
Well...and here.
Huzzah! I’m the plan with
everything.
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The Center of Your Business
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1% Pricing +11% Profit
The Importance of Pricing
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Main Takeaway #1
Pricing is huge. Develop your pricing strategy alongside the rest of your product and marketing.
POSITIONING
“Who are you selling to and how are you
selling?”
Customer Personas
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“Align your revenue model along your value
metric...”
Value Metric
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Value Metric
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Wistia - Value Metric
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A value metric is what you charge for, and should:
1. align to your customer’s needs.
2. grow with your customer.
3. be easy to understand.
Value Metric
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Define Your Value Metric
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Define Your Value Metric
Perfect World
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Define Your Value Metric
Perfect World
Real World
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Define Your Value Metric
Perfect World
Tomorrow
Real World
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Main Takeaway #2
Understand and align upon your value metric and most other metrics will fall into place.
PACKAGING
“What are you selling?”
Packaging
“Bundles, tiers, and packages should be
segmented and discrete...”
Packaging
HubSpot
MailChimp
Litmus
“Please rank the following features on a scale from 1 to 7...”
Traditional Feature Analysis
Relative Value Analysis - MaxDiff and Conjoint
“Select the Most Important and Least Important Feature…”
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Main Takeaway #3
Each customer should have a point of entry and a place to grow.
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PRICING
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Pricing
“Your customer is the only one who can tell
you their willingness to pay...”
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Price Laddering and VanWestendorpf
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Price Laddering and VanWestendorpf
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Main Takeaway #4
Utilize a data model and talk to your customer about their value perception.
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EVERYTHING ELSE and QUESTIONS
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Download our free e-book to stop guessing, and start pricing intelligently.
@Patticus
Download our free e-book to stop guessing, and start pricing intelligently.