Tag: Customer Segmentation

Execute Your Plans with Courage, Not Hubris | Strategic Pricing Solutions

Execute Your Plans with Courage, Not Hubris | Strategic Pricing Solutions

If the team has identified certain products as being superior to competing alternatives, and has quantified how that superiority creates value for customers versus the alternatives, those products should have higher prices than the competitors’.  If that means raising some prices more than expected, so be it.  If the team is afraid to execute the […]

Segmentation Is a Critical Part of Channel Management | Strategic Pricing Solutions

Segmentation Is a Critical Part of Channel Management | Strategic Pricing Solutions

The challenge that Under Armour is facing is the exact reason most luxury brands limit their channels to high-end stores where shoppers are not price-sensitive.  If the luxury brands want to target more price-sensitive customers, they develop new products or brands that do not have the same cachet or premium pricing.  By doing so, they […]

Focus on the Segments Before Lowering Prices | Strategic Pricing Solutions

Focus on the Segments Before Lowering Prices | Strategic Pricing Solutions

Last week there was an article in the Wall Street Journal, So Long, Hamburger Helper: America’s Venerable Food Brands Are Struggling which discussed the declining market shares of some of the largest packaged food companies.  It is not a surprise; the large CPG companies have been losing customers for the past few years on multiple […]

Don’t Chase Pricing Ghosts | Strategic Pricing Solutions

Don’t Chase Pricing Ghosts | Strategic Pricing Solutions

Today is Halloween, but it is no time to be spooked by the challenge of increasing prices to fully capture the value of your products or services.  In nearly every company, opportunities exist to capture more value from select customers or products.  However, those opportunities are often not where you think they are, so do […]

Incremental Investments in Pricing Yield Big Returns| Strategic Pricing Solutions

Incremental Investments in Pricing Yield Big Returns| Strategic Pricing Solutions

All companies want to improve their profitability and deliver more value to their shareholders, but the best ways to do that are often debated. Pricing is the most powerful lever available to companies striving to improve profitability, but how to effectively use that lever may be unclear. Over the years we have talked with many […]

Pricing Strategies for Multiple Personalities | Strategic Pricing Solutions

Pricing Strategies for Multiple Personalities | Strategic Pricing Solutions

I have been watching the Game of Thrones the past several seasons. I love the rich scenery, the diverse range of characters, and the intriguing, suspenseful drama. A recent episode about the Many Faced God got me thinking about customer types. In particular, it got me thinking about customers with multiple faces or personalities. Some […]

Product Positioning – Good, Better, Best | Strategic Pricing Solutions

Product Positioning – Good, Better, Best | Strategic Pricing Solutions

We have written many times before in our blogs and newsletters that customers are not all equal.  They have different needs, they value product attributes differently, and they have varying levels of price sensitivity.  In order to address these multiple customer segments, it is common to have multiple variations of a product or service offering […]

Fire Low Margin Customers as a Pricing Strategy? Not a Good One. | Strategic Pricing Solutions

Fire Low Margin Customers as a Pricing Strategy? Not a Good One. | Strategic Pricing Solutions

A somewhat popular tactic of companies looking to improve their margins is to identify their low-margin customers and fire them. They don’t go Donald Trump on their customers and say “You’re fired.” Instead the companies jack up the prices of those customers to either drive them away or make them profitable. Some companies even erroneously […]

New Year’s Resolutions for Pricing | Strategic Pricing Solutions

New Year’s Resolutions for Pricing | Strategic Pricing Solutions

I resolve to: Set prices according to the value we bring to customers, not according to my costs. Use the rich data I have in my transactions and CRM interactions to better understand my customers’ needs, how they react to prices and offers, how their prices compare to similar customers and situations, the reasons we […]

Blog: Customer Segmentation in the Wireless Market | Strategic Pricing Solutions

Blog: Customer Segmentation in the Wireless Market | Strategic Pricing Solutions

For years cell phone service came with 2-year contracts and included a discount on a new telephone.  In the past year, however, T-Mobile started a trend of unbundling the purchase of the phone from purchase of talk, text, and data services.  Now all of the major carriers have moved to the unbundled model, with prices […]