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Price is Right: Pricing in Today's Digital Association
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Transcript of Price is Right: Pricing in Today's Digital Association
Is The Price Right?
Monday, June 1, 201510:15-11:15
Suzanne CarawanChief Marketing OfficerHighRoad Solution
What We’ll Cover
• Pricing in Associations• Selected Pricing Strategies• Cultural, Social & Technological Effects on
Pricing• Practice of Pricing• Top Areas to Develop for Associations*
2014 State of Digital Marketing in Associations Research Report
Emotions of Pricing
• Directly affects revenue• Seen as wrong v. right• Seen as one time shot at getting the price
right• Fear/pressure/lack of time & research• Lack of skill /structure
Logic of Pricing
• Product marketing• Profit & loss responsibilities• Continuous experimentation• Methodology:– Decide strategy– Decide target market(s)– Set price– Set timeframes– Test & reset
Basics of Association Pricing
1) COGS + Margin (20-40%)2) Look at what competitors are doing3) Pick a price & end with a 5 or a 94) Charge $59 per webinar
(Some) Pricing Strategies
Pricing Strategies
Captive Strategies
Is This You?
• Low introductory price that is often a loss leader (membership)
• Assumption that user can’t go anywhere else for a period of time to get what you offer
• Assumption that you “have” the user for a specified period of time
• Assumption that now you have them, you can sell more and they will be more willing to buy additional products & services
Pros: Short-term loyalty, short-term cashNegatives: Undermine brand, zero trust
Full Price or Skim Strategy
Is This You?
• Used for specialty products or exclusive markets
• Brand & user experience are key factors
• Aim is lower volume of sales at high margins
• Focus on differentiation with less monitoring of the market
• Discounting is used for repeat purchase and to instill loyalty
Pros: Long-term loyalty, high marginsNegatives: Harder to differentiate, lower volume
Competitive Pricing Strategy
Competitive Pricing Strategy
• Used for a specific market purpose• Enter the market• Disrupt a competitor• End of life for a product• Reward desired behavior (large
quantity purchases, repeat purchases)
Pros: Short-term cash, disruption, brand awarenessNegatives: Race to the bottom, commoditization, training of users
Early Bird v. Reward the Worm
Cultural, Social & Technological Effects on Pricing
What Should the Price Be?
Willingness to Pay
Media, Generations, Pricing
The Research Consumer
What is Normal?
The Mobile Consumer
Sample Before Commitment
Have it My Way
Continuous Bundled Plans
Monthly Options
Understanding of Market
How Millennials Shop
Understanding Motivators
Practice of Pricing
Warning! Before Pricing
• Do you have the products & services that:– People want– Are truly marketable– Can be offered in a way that resonates with
current buying behaviors
Understanding of Market
Personas and Pricing
http://www.sensiblemarketing.com/blog/bid/156636/22-Questions-to-Ask-When-Creating-Buyer-Personas
What’s Worth the Investment?
How/When Can You Fit In?
Check & Test Assumptions
1) Students don’t have money & won’t invest2) Everyone is retiring & won’t attend conferences anymore3) People will register earlier if we discount4) Virtual events will cannibalize our offerings5) Digital advertising will undermine print6) Technology or paper form required us to have too much transparency of pricing & couldn’t test effectively
Decide Your Strategy
• Go-to-Market (GTM)?– Need to recoup investment costs?– New need to introduce? – Level of demand?
• Competitive?• Quick Cash? • Reset Behavior?
Setting Pricing
• Competitive Research• Persona Research• Guesstimate on Willingness to Pay• Consumer Panel/Advisory Persona Board
Feedback• Test Market• Full Roll-Out to Target Audiences
Variable Pricing: Landing Pages
Price Testing Tips:Go with 3
Price Testing Tips
• Define a timeframe of price testing• Continuous market feedback from those who
did buy and those that abandoned cart• Exert discipline• Modify pricing at end of testing period• Be scientific
Top Areas to Develop in Association Digital Pricing
Banner Ads
http://www.labnol.org/internet/best-banner-sizes-for-adsense/11541/
Banner Ads
Bundles or Separates:• Email Newsletters• Blog(s)• Website(s)• Blog Email
Notifications• SMS• Facebook/Twitter• Instagram• Mobile App• Communities• Community
Notifications
Webinars
• Is It Really the Live Event?• Member/Non-Member?• Per Webinar?• On Demand• Sponsors• Continuous Access
Virtual Events
• Live attendance• Virtual
attendance• On-demand
attendance• Repeats
Event Content
• Livestream• Record• Edit & Improve• Append• Track• Analyze• Bundle• Price
Photos | Videos | Testimonials | Awards & Certificates | Transcripts | Selfie Packages | Proceedings as eBooks | Curated Resources
Native Advertising
Native Advertising Revenue Streams
• Social Media Coverage• Blog Posts/Series• Webinar Content• Articles• Interview Panels within an Article• Videos• White Papers• eBooks/Books• Panel Discussions/Roundtables
Call for Research
• 2015 State of Digital Marketing in Associationspages.highroadsolution.com/take2015report
• Pricing—especially digital!
Pricing Resources
• Small Business Chronicle• National Federation of Independent Business• ASAE’s New Product Development Framework• Pragmatic Marketing• Avenue M
Questions? Contact us!
Suzanne CarawanChief Marketing OfficerHighRoad [email protected], Twitter, SlideShare: /suzannecarawan