Consulting > Pricing Strategy
Pricing is one of the infamous 4 Ps of Marketing and one that has become more complex with the onset of the digital age.
Pricing and optimisation of commercial outcomes has never been more open to flexibility. There are plenty of tools available to monitor and optimise pricing and it can even be relatively simple to develop apps to do this yourself.
Growth based models such as Freemium (think Spotify) – free supported by advertising with premium upgrades – or Free (think Facebook) with revenues coming from the advertiser’s desire to access the scale, are common and can deliver significant volume and company value at pace. They can also be quite risky and so developing the pricing strategy, upsell and lifetime value metrics is core to ensuring long term stability.
More traditional pricing tactics however such as competitively priced goods with seasonal discounts can deliver more stability and be easier to plan but may not be as attractive to investors, sector dependent of course.
Then, whether your brand strategy can support a premium pricing model is another consideration.
Add to this the timing and pricing of up sells, cross sells and even down sells (to save the customer and improve CLTV) and the data, process and strategy involved can get very complex.
I have worked on all of these models with various brands over the last 20 years. If you’re looking for some independent advice on your pricing models or someone to run pricing analysis and customer feedback programmes get in touch and I’ll be happy to have an informal chat.