In this episode of Product Chats, pricing expert Mark Stiving joins host Rebecca Kalogeris to dive into the core elements of value-based pricing and how companies can leverage segmentation to align pricing with customer needs.
Mark emphasizes the importance of understanding customer value, using Uber’s pricing tiers as an example of how to communicate value effectively across segments. He also introduces listeners to the “curse of knowledge” in pricing and the importance of communicating value clearly and specifically to different customer groups.
Key Takeaways:
- Defining Value: Discover why value is best defined as “the result of solving customer problems” and how this perspective changes pricing strategy.
- Market Segmentation and Packaging: Learn how targeted segmentation and a “good-better-best” packaging approach can meet diverse customer needs and drive revenue.
- Identifying Pricing Opportunities: Explore Mark’s Opportunity Signals Worksheet to find untapped areas where raising prices or adjusting pricing metrics could increase profitability.
- Overcoming Price Increase Fears: Mark shares strategies to gain confidence in raising prices and communicating value without fear of customer pushback.
Guest Bio:
Mark Stiving is a leading pricing strategist, educator, and creator of the Pragmatic Institute’s pricing course. Known for his customer-centric approach, Mark helps organizations understand and capture the true value they provide through carefully crafted pricing strategies. With decades of experience, Mark has worked with companies across industries to refine their pricing techniques and maximize revenue. An engaging speaker, author, and consultant, Mark’s practical insights empower businesses to align their prices with the unique needs of different market segments.
ABOUT PRAGMATIC INSTITUTE:
Since 1993, Pragmatic Institute has provided training and professional development for product, design, and data professionals. Our comprehensive methods and Pragmatic Framework equip professionals with the skills to accelerate innovation, increase customer satisfaction, and bolster revenue. We offer online, in-person, and on-demand courses taught by industry experts with decades of experience.
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