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Estd 4.22.2023
Below is a concise approach based on the methodologies described in Price to Scale:
- Begin with Controlled Segmentation
- Segment your customer base into clearly defined cohorts. For instance, separate heavy users from occasional users or customers who signed up under different promotions. This minimizes the chance of creating widespread disruption while still allowing you to test different pricing units.
- Use Targeted, Straw-Man Scenarios
- As discussed in our book, start with straw-man concepts by developing two or more pricing scenarios. Test these through structured interactions—like fixed trade-off screens or targeted surveys—to gather both qualitative and quantitative feedback.
- This method allows you to capture genuine reactions to various pricing models while keeping the conversation focused and clear.
- Communicate Clearly and Offer Alternatives
- To avoid perceptions of unfairness, be upfront with the experimental nature of the changes for the subset. Provide alternatives, such as upgrades or volume discounts, that make the transition beneficial rather than punitive.
- By explicitly differentiating the experimental pricing lineup (much like the book recommends when modifying existing tiers), you reduce comparisons to past pricing and mitigate concerns of chaos.
- Monitor Reactions and Adjust Incrementally
- Track both measurable outcomes and unprompted feedback. Use methods like force-ranking benefits and pain points to understand customers’ true price sensitivity.
- Once a promising unit is identified, roll it out gradually. This approach ensures that the experiment remains manageable and any necessary adjustments can be made in real-time.
In summary, by segmenting your base, using structured pricing experiments, communicating clearly, and monitoring feedback, you can test different pricing units effectively—ensuring that both the experiment’s integrity and customer fairness remain intact. This practical, phased method is a key theme throughout Price to Scale and can help you refine your pricing strategy without alienating your user base.