Pricing Strategy: Leveraging customer psychology to maximize average customer value

“You will learn more about marketing if you get outside of the marketing literature and into the mind literature.”

— Flint McGlaughlin, Managing Director and CEO, MECLABS Institute

(This article was originally published in the MarketingExperiments email newsletter.)

Today’s video replay is loaded with valuable information about how and when to present your price to the customer while on their journey to the final macro-yes — the purchase.

Flint McGlaughlin shares two key factors in pricing strategy — timing and intensity.

He explains the importance of using the customer’s maximum moment of motivation (MMM) to get the timing right. A common error marketers make today is to continue discussing your product’s value after the MMM has passed. This mistake can actually lessen your product’s perceived value in the customer’s eyes, decreasing conversions.

McGlaughlin introduces how to intensify your product’s perceived value by tapping into three primary human desires — pleasure, power and meaning — suggesting that one of these is the top motivator marketers should consider for their pricing/messaging strategy. In doing so, genuine value is added to the customer’s life, as well as the marketer’s.

Watch the replay of this YouTube Live interactive session to gain valuable insights for your pricing decisions.

Here are some key points in the video:

• (4:40) Pricing strategy resource list
• (8:39) Price is not a number: How can I get the most value per customer?
• (19:14) Case study: 97% increase in conversion by finding optimal location of the price in the customer journey
• (20:25) Why you should not change one variable at a time when testing
• (26:06) Maximum Moment of Motivation (MMM): Customer’s perceived value of your offer diminishes after this point
• (28:25) How to map your funnel to achieve MMM
• (33:00) Value Proposition courses available: https://meclabs.com/education
• (35:12) “You will learn more about marketing if you get outside of the marketing literature and into the mind literature.”
• (39:10) How to apply customer psychology to pricing: Freud, Adler, Frankl
• (44:20) Victor Frankl: The importance of appealing to the customer’s desire for meaning

Related Resources

E-commerce: When should you reveal the price in your shopping carts?

Pricing Psychology Test: Shopping Guide Lifts Order Value 35%

Content Marketing: How a farm justifies premium pricing

The post Pricing Strategy: Leveraging customer psychology to maximize average customer value appeared first on MarketingExperiments.

from MarketingExperiments https://ift.tt/2M6Xlnp

from WordPress https://ift.tt/2OTPVpm