Tue, 10 January 2023
Solo episode with Bruce Sinclair, the host of the show, discussing how to improve pricing optimization and customer retention by gathering primary customer data with smart tech.
On pricing optimization: Some companies use cost-plus pricing and others use competitive-based pricing, but the gold standard is value-based pricing. Since price is exchanged for value, to get the price right we need to understand how much value the product produces… which is easier said than done. Until recently, understanding what exactly the customer values and how much they value it is a qualitative research project at best. But now we have virtual products – native and virtualized. Software and tech products that can use APIs to gather the primary data needed to calculate produced value and smart products that can use sensors to gather the primary data needed to calculate produced value…
On customer retention: As we all know, it’s far more profitable to keep a customer than to acquire a new one, whether that’s to sell them more of the same or new products or services. The absence of a direct relationship results in a loss of customer control and potentially a loss of customer without ever knowing why. Today selling a physical product doesn’t have to mean the end of the customer relationship. Smart products are connected to the internet and just like software, they are forever connected to the customer…
In this episode, Bruce discusses:
Related links you may find useful: