In a recent, engaging episode of the Impact Pricing podcast, Mark Stiving and Joe Woodard dove into a powerful conversation about subscription pricing, value pricing, and the advantages and obstacles of incorporating these models within accounting or bookkeeping practices. Their dynamic discussion covered a wide array of topics, from customer segmentation and value-based pricing to pricing psychology and the challenges businesses encounter when executing pricing changes. Here's a snapshot of their invigorating exchange:
Know your customers before you price
Joe and Mark kicked off the conversation by emphasizing the crucial role of customer segmentation in shaping effective pricing strategies. They highlighted the importance of understanding different customer segments' unique needs and leveraging data to analyze customer behavior for targeted approaches.
The duo then delved into the world of value-based pricing, a method focused on setting prices according to the value customers perceive in a product or service. They suggested harnessing customer feedback and market research to better understand and adjust prices in line with the value provided.
Joe and Mark also examined the fascinating interplay between pricing psychology and customer behavior, acknowledging the emotional responses pricing can evoke. They advised businesses to be mindful of this and use pricing cues and context to positively influence customer perceptions, thereby enhancing the perceived value of their products.
Communicate your value to drive growth
When addressing the hurdles of implementing pricing changes, Joe and Mark underlined the importance of clear communication and explaining the value provided. They candidly discussed the potential resistance businesses may face from customers and employees when introducing pricing changes.
The conversation then turned to the role of pricing in driving business growth. Joe asserted that businesses can use pricing as a tool to differentiate themselves from competitors and establish a competitive advantage. He emphasized the significance of delivering value to customers and effectively communicating that value to fuel growth.
Leverage an expert to help you price
Joe and Mark also stressed the need for pricing expertise in business, advocating for the inclusion of pricing experts on staff to help develop strategies and implement changes. They conveyed the essential nature of investing in pricing expertise for maintaining a competitive edge and maximizing value from customers.
Joe and Mark passionately encouraged businesses to be bold in raising prices and charging what they're worth to capture more value from customers. They encouraged experimenting with pricing strategies and making data-driven adjustments based on customer feedback and market trends.
For a deeper understanding and to experience the energy of this conversation, listen to the full episode with Joe and Mark. Their insights into customer segmentation, pricing challenges, and the importance of focusing on customer value will empower you to create effective pricing strategies that drive growth and capture more value from your clients. Don't miss out on this invaluable knowledge!
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