Future..is such a mysterious word when it comes to planning a pricing strategy, especially in times of volatility. Therefore, businesses are now seeking a long-term pricing strategy.
So, here are a few mistakes to watch out for when developing your plan:
1. Complicating the life cycle pricing through launching new products
Facing price increases through launching new products is an effective strategy, yet it can get complicated if businesses fail in measuring consumers’ value perception of value in your brand. Therefore, it becomes confusing to decide between pricing or volume over time. To address this challenge, businesses can use techniques such as conjoint analysis or real-time consumer feedback to measure consumer value perception and make informed pricing decisions.
2. Using promotions to increase sales only
Although using promotions is a brilliant technique that can increase revenues, still many businesses fail to sustain the same level of sales once the promotion is over, leading to cannibalization. Accordingly, the promotion wasn’t effective enough to increase profits. To overcome this challenge, businesses should consider using targeted promotions that appeal to specific customer segments and align with their needs and preferences. By doing so, businesses can attract new customers and retain existing ones, leading to sustained sales growth and improved profitability over time.
3. Keeping data in silos
To understand consumer needs and pain points, businesses should integrate all the data they have in one place to allow for a holistic understanding. Therefore, it will be easier to conduct consumer-centric strategies which increase brand value. Furthermore, having a centralized data system can help businesses make informed decisions based on real-time information, enabling them to respond quickly to market changes and stay ahead of the competition.