Everyone is different. We have different needs, wants, desires, tastes, habits etc. Most relevant to pricing, everyone has a different Willingness To Pay (WTP). We don’t force everyone to wear the same clothing style, or eat the same foods, or drive the same cars. Similarly, we don’t have to force everyone to pay the same price. We can customise pricing.
Car pricing is customised. Not the sticker price, but the actual price people pay. I just bought a new car and it is very unlikely that I paid the same price as anyone else for the same car at that dealership. I certainly negotiated differently and had a different WTP.
Airline seats are pretty customised. Although a few people on the plane may be paying the same price, not many are. The airlines have figured out great techniques for charging different customers different prices, trying to capture more of each customers’ WTP.
Some items, like potato chips, are harder to customise for just a few people, but they do customise for larger groups. They charge different prices for different flavors in different regions of the country. They offer coupons to let the price sensitive pay less.
Pricing is customisable. The first step is thinking of two customers or customer types that have different WTPs. The second step is figuring out how to let people with lower WTP pay less while not letting people with higher WTP have the low price, all while everyone thinks it is fair. That’s where the fun comes in.
Mark Stiving is a pricing strategist, runs Pragmatic Pricing, and is the author of Impact Pricing: Your Blueprint for Driving Profits.
Want to read more by Mark Stiving? Read Why value-based pricing works best.
When running an ecommerce store over busy periods of time, it can be extremely hard to manage a thousand things at once. However the most important factor in any business is ensuring that your customers are happy.
Facebook fan pages are the prime place for people to complain and these complaints can be the most difficult to tackle. Within an open space for everyone to see, comments will be seen by fans of the group and viral word of mouth soon develops. A common saying is that if one person has had a bad experience they will tell ten other people, however on a Facebook fan page with 6,000 likes- the amount of people hearing about this experience will increases dramatically.
In a study carried out by the CMO council of 1300 consumers and 132 senior marketers, 46% of consumers stated that they would expect a reply to their query within 24 hours.
No 1 Rule: You may have already heard this one before but it is worth repeating. Do not ignore comments on your business profile or Facebook fan page; it can be a lot worse than ignoring an email. Customers can soon feel neglected if they do not obtain a response and are left to think about what is happening next. The worst thing you can do is delete comments as this adds fuel to a fire that can soon get too hot to handle.
Think of a way you can help and respond like you would over the telephone or via email. If the comment indicates you are at fault, ‘remember your customer is always right’ and apologise before you even begin to solve the issue.
Once you have responded to a query, ensure that yourself or someone in your organisation monitors the conversation taking place on Facebook and responds on a regular basis. This reaction will reassure customers that you care and calm the situation down.
If a customer has threatened to spread bad vibes about your business or set up another Facebook group to encourage others to bad mouth you, contact this person directly via email and see if you can solve the matter out of the public eye.
If you do receive a positive response from the way you handle a customer complaint, you may find yourself receiving a worthy comment like the below:
“I had a real moan about your company yesterday - as you were unable to supply a pair of shoes that I specifically ordered. In hindsight, I can appreciate that you must have been incredibly busy over the Christmas period, and I thank you for your email of apology from ----------. I would order from you again, and apologise, once again for my bad manners.”
If other customers read this comment, they instantly become reassured that you are a company that cares and deals with complaints respectively.
The bottom line is; consumers want more experiences, more engagement, more rewards, and more reasons to connect with each other and brands through social media.
Jessica Hodkinson is writing for Daniel Footwear and runs her own PR blog site.
There are hundreds of potential marketing advisors for a small business owner. From design agencies, PR specialists, telemarketers, SEO experts, social media bods, media planners, and on, and on. It’s difficult to know who to talk, when and why.
Here are ten signs that you could do with some proper strategic marketing input:
These are all real scenarios that we’ve heard from small business owners in the last 18 months. Small businesses often make do with a ‘marketing-come-reception’ set-up, working with the marketing suppliers run by friends of friends, or the people down the road. And, there’s nothing wrong with that…if you know exactly what you’re doing on the marketing front. If you have an effective strategy clearly mapped-out, and a good grasp of the interplay of the key marketing tactics, you can indeed put together a top notch freelance team to deliver against your sales and marketing objectives. If, however, you’re feeling your way through the discipline, working it out as you go, then you’ll probably find that each supplier you speak to seems to sound pretty sensible.
You may struggle to find your way through all the ‘good ideas’ that they come up with to configure a watertight marketing operation that supports every step of your sales funnel.
In larger organisations it’s the job of the marketing director to pull all this together. Coming in on salaries upwards of £65k, most small business owners we meet simply can’t afford to have a hard-hitting marketing director on their team. So, what do you do? If you find yourself nodding in recognition at any of the statements above, it would be sensible to find yourself a strategic marketing partner who can be your marketing brain – working out what you need to say, to whom, when and through what channel.
There are hundreds of potential marketing advisers for a small business owner.
From design agencies, PR specialists, telemarketers, SEO experts, social media bods to media planners, and on, and on.
It’s difficult to know who to talk, when and why.
Here are ten signs that you could do with some proper strategic marketing input:
These are all real scenarios that we’ve heard from small business owners in the past 18 months. Small businesses often make do with a “marketing-come-reception” set-up, working with the marketing suppliers run by friends of friends, or the people down the road. And, there’s nothing wrong with that… if you know exactly what you’re doing on the marketing front.
If you have an effective strategy clearly mapped-out, and a good grasp of the interplay of the key marketing tactics, you can indeed put together a top notch freelance team to deliver against your sales and marketing objectives. If, however, you’re feeling your way through the discipline, working it out as you go, then you’ll probably find that each supplier you speak to seems to sound pretty sensible. You may struggle to find your way through all the “good ideas” that they come up with to configure a watertight marketing operation that supports every step of your sales funnel.
In larger organisations, it’s the job of the marketing director to pull all this together. Coming in on salaries upwards of £65k, most small business owners we meet simply can’t afford to have a hard-hitting marketing director on their team. So, what do you do? If you find yourself nodding in recognition at any of the statements above, it would be sensible to find yourself a strategic marketing partner who can be your marketing brain – working out what you need to say, to whom, when and through what channel.
Bryony Thomas is an expert contributor to Marketing Donut and is Chief Clear Thinker at Clear Thought Consulting. This blog originally appeared here.
Every year we make them, but only occasionally do we keep them. New year’s resolutions often represent our best intentions, which somehow get sidetracked as “real” life takes over and our time becomes filled with ticking items off “to do” lists and trying to keep our heads above water.
If you’re an email marketer, the same often holds true for the more strategic items on your list, which can be overlooked in an effort to get the next email out the door. However, as one of Return Path’s executives is known for saying, hope is not a strategy. Just wanting something to change doesn’t make it so. When thinking about the New Year’s resolutions you’d make for your email program in 2012, I recommend creating a realistic plan for sticking to these:
1. I will make time to test. This is a fundamental and essential best practice for any email marketer to follow. Without a testing plan, you simply won’t know the levers to pull to positively impact your email program’s performance. Instead, you’re just guessing as to what works, what doesn’t, what resonates and what misses the mark. Start by regularly testing the most basic email program elements with an A/B split test, like subject lines, and work your way up to multivariate testing of creative elements, like images, calls-to-action and landing pages.
2. I will define (and track) metrics to measure performance. What metrics are most important for measuring email program success? For most marketers this includes some combination of deliverability, open, click-through and conversion rates, but depending on your business model, your subscriber base and the desired responses you’re looking to generate from the email channel (i.e., purchases, leads, downloads, web traffic, etc.), creating a customized list of KPIs is essential for measuring trends over time. I continue to be amazed by the number of companies I come in contact with that are blindly sending email without any capabilities for tracking response rates.
3. I will be more focused on engagement. An email’s primary purpose is to drive an action. This can be anything from getting a subscriber to read what’s in an email, take a survey or walk them through a multi-step purchase process. But what about inactivity? Chances are you have a reasonably high percentage of subscribers who were once engaged and interacting with your messages, but have lost interest over time. These subscribers are likely to be deleting your messages without reading them or have set up rules to automatically route your messages to an “unimportant” folder, like in Gmail’s priority inbox. So what changed, when did it happen and, most importantly, why? Understanding what keeps your subscribers engaged over the long-term will be increasingly important for getting delivered to the inbox, staying there and maintaining high levels of activity.
4. I will reengage with my inactives. This is the next logical step. Stop focusing on list quantity and concern yourself with its quality. The health of your email program depends on it. Inactives can represent everything from true spam traps, recycled email addresses and unknown users to subscribers who once found your emails relevant and no longer do. Take action and remove the less than clean segments of your list that represent bad data or old data and create a strategy for reengaging with existing subscribers who are still valuable to your business.
5. I will monitor the competition. Standing out from the inbox clutter will continue to be a challenge as the volume of email increases, and this includes differentiating your brand and value proposition from your competitors. If your competition is incorporating features like geo-targeting, real-time inventory updates, offer count-downs in real-time, customized content and personalization elements into their email messages, what effect will that have on revenue and engagement, and how can you stay one step ahead? These insights are key as brands compete for subscriber mind-share in a crowded and increasingly mobile inbox.
As the saying goes, “even the best laid plans of mice and men often go awry.” However, committing to at least some of these New Year’s resolutions will ensure your email program is set up for success in 2012 and beyond. So, let’s toast to that!
This post originally appeared on the DMA UK Email Marketing Council blog.
Margaret Farmakis is senior director, professional services at Return Path.
Read more about email marketing: Here are a few examples showcasing why you should check that everything is in order before you hit the send button! Plus, read about how new viewing habits (desktop vs. smart phone) do have an impact on email design, however the basics for email creative don't change.
Want to know more about email strategy? — read about improving your email open rates.
Surrounded by the brightest and best of the UK’s entrepreneurs, business minister Mark Prisk MP launched rather a useful tool for the UK’s small businesses at BIS HQ this week – a definitive calendar of events to help small business throughout Britain for every month in 2012.
Targeted at pre start ups as well as established and new businesses, the calendar marks the first time all Britain’s best business events feature on the same site in a searchable format. There are 600-plus events listed already – and Mark Prisk is aiming to get 1,000 online in the near future. He said:
“We want 2012 to be the year of enterprise, where entrepreneurs can unlock their business potential. Enterprise events don’t just take place on one day, or during one week, but they appear throughout the year and across the country.
“We need to make sure people know that there is support and advice available, that it is easy to get, and it is often on their doorstep.”
With shows, talks, workshops, schemes and local networking events listed, the calendar does just that. And the country’s diverse business support organisations – ranging from teachers who inspire primary school children to mentors of hi-tech start ups - are showcasing their event offers on the site too. Rajeeb Dey, one of the founders of the Government’s StartUp Britain campaign, said:
“The Enterprise Calendar is about helping businesses go for it. It will shine a spotlight on the broad range of plentiful resources that exist for people wanting to start or grow a business in 2012.”
The most up-to-date version of the calendar is online to search or download – and even upload your own event. Many events are free, so the calendar could well become an invaluable tool for you – and at the very least should benefit you with a couple of days of advice, inspiration and a range of handy new contacts.