Customer Driven Pricing Strategy
Why 3 Service Plans? Why not 16? Take a lesson from Dodge and move to Customer Driven Pricing Strategy.
Technology is enabling at least an order of magnitude change in the sophistication of offerings. Whether it is cars or services, the enablement and implications are the same. This change permits a company to leverage two important sources of pricing power – segmentation and branding.
Customer Driven Segmentation
Segmentation, and its action corollary targeting, is the tailoring of offerings to the needs of groups of customers with unique needs. Each of Challenger’s 16 offerings are positioned for a slice of the overall challenger market, from a dad’s gift to son for college, to gear-head weekend racer.
The second is branding, or in the B2B world, Customer Driven Persuasive Proposals. How does Dodge move you from a $30K to an $80K price point? Not by giving you a list of add-ons for you to pick from, but rather by bundling features together in customer driven versions, permitting you to easily understand the difference between a lowly Challenger to a pulse pounding Demon.
Let me close this with two questions:
- How well are you targeting customers with unique needs, and leveraging big data to do it well?
- How well are you designing your offerings so that the benefits and value are easy to understand and act on?