/ Pricing

Customer-centric price strategy - instead of simply just adjusting the price

The price is that aspect of the marketing mix which has the fastest and greatest influence on sales, turnover and margins. As a rule, it’s assumed that higher prices have a negative effect, and lower prices a positive effect on sales. This isn’t completely wrong: However, if we just take this into account then many opportunities are wasted.

Because people’s purchase decisions are rarely rational, there can be anomalies in the demand function, where there’s potential for margins and, even, for increasing sales, too.

Price vs. value = value for money?


Behavioral economics makes people's irrational decision-making behavior predictable. It provides us with a basis for developing pricing strategies, which reflect both the interests of the company and the customers’ needs and is the basis for sustainable success.

Pricing
strategy

Bundling / 
Debundling strategies

Price table development

Pricing for disruptive innovations



How do you recognize customer needs?

Both types of innovation require a fundamental understanding of what makes customers tick, so we can find out what they really want and need from my product.

But is it possible to know precisely what customers want? Behavioral Economics can help us here, too. The basis is what customers consider important in their (product) decision, and how they proceed in reflecting these success criteria in their decision. When we know about the customer's attitudes and what or why he actually does it, then we can draw conclusions from it - and build products and services from it, on the basis of the behavior patterns shown, which lead - with a high probability - to the customer deciding in favor of your product.

Our 6 implementation guarantors:

Make it Matter is our motto. We take general learnings and illustrate, with the help of Behavioral Econmics, the mechanics and rules of thumb behind customer behavior, so that nudges can be targeted to achieve the desired goal. Practicality is essential and is the reason why we use the following elements in our work:

Insight Principles

Insight principles illustrate the mechanisms or cognitive principles that your customer uses when deciding what to do in each situation.

Do you know your customers’ insight principles? If so, you’ll understand how the topic is perceived from their point of view, and you’ll know whether you’re already taking full advantage of all the opportunities that you’re being offered.

Do's and Don'ts

For each topic we offer very tangible action guidelines for the respective contexts. The aim here is to know, based on the lessons learned, what you should be doing - or what you should refrain from doing - to achieve the desired results.

Decision Syntax

The decision syntax outlines the decision logic of your customers. Thus we reveal which topics are passed through in which order with which quality criteria in the decision in the mind of your customer. Without knowledge of the decision syntax, it can happen that you do not answer an argument of the early decision layer well from your customer's point of view - and thus fall out of the Relevant Set, although you meet all other criteria with flying colours.

BE Toolbox & Pattern Analysis

The analysis of behavioral patterns shows which behavioral tools your customers use, which goals motivate their behavior and which needs lie behind their behavior. For this we use our Behavioral Economics Effects Toolbox - with 90 of the most important and scientifically proven behavioral effects.

Nudging Strategy Cards

A decisive advantage for working with Behavioral Economics is that by recognizing the behavioral patterns of your customers, we not only understand how they tick, but also offer possible solutions for how these behavioral patterns can positively change customer behavior through which concrete measures (nudges/success strategies)

Canvas-
based Workshops

Efficiency and effectivity are important to us. We’ve developed structured canvases for this reason for each key step (e.g. scoping phase, ...) to support us go through all phases unerringly but efficiently - and ultimately to achieve the goal.

Our clients are active in the following industries:

Arrange a free consultation

Contact


StraightONE GmbH
Fürther Straße 54
90429 Nürnberg


(0049) 911 2177 380


mail@straight.one

Free Mini Course

Register now for the free online mini- course: Behavioral Economics Effects
 (in German)
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