Elastic customers - what you may not know

Elastic CustomersWhat you may not know

Prabhu Consulting | www.prabhus.com

Elastic Customers

• Elastic customers are bargain hunters

• Price sensitive

• Coupon users

• Price comparison experts


Our Client

• An online deals startup similar to froopon


Assignment

• Help us grow the revenue by x% and increase the customer base by y%


What we didn’t do

• Porter’s 5 forces

• Strategy canvas

• Value curve

• Competitor Analysis

• Marketing strategy

• Mba 101 frameworks


What we did

• A quiz


Quiz

• If a product is cheaper in john lewis compared to currys, what would a typical elastic customer do?


currys price match


• If a product costs the same in both comet and currys, who will get the sale.


• Some percentage of people compare quidco and topcashback too!

•


• If a product costs the same in both amazon and pixmania, who will get the sale.

• Hint


• Poor payment speed.


• If a Nokia 2330 PAYG mobile is available for 99p + £10 topup, what would a typical bargain hunter do?


CEX

£11.01 profit!


From Hotukdeals


What’s the point?

• Elastic customers are just that ........ elastic.

• Multiple ways to save money. Price, price match, cashback, clubcard/nectar points, resale, eBay opportunities, returns policy, postage costs, brand name?


Our approach

• Consultants should convince the customers that they indeed “get it”

• A strategy report approached from a frameworks point of a view just won’t cut it.

• Our approach was purely empathic


Result

• Client is in the process of redesigning their website and the business model from scratch.


About me

• A freelance strategy consultant with focus on business model innovation.

• Email: [email protected]


Elastic customers - what you may not know

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