The whole point of pricing, value-based pricing, is to charge what customers are willing to pay. And almost by definition, loyal customers like us more, they would be willing to pay us more.
This is the big exception to the rule of charge what a customer is willing to pay. My intent when I do price segmentation and charge different customers different prices is I also want to think about the lifetime value of a customer.
If you have a customer who loves you, they’re very loyal to you, and yet they find out that you are charging them more than anybody else, it will upset them. You have a really high probability of losing them as a customer. And if you do, you lost the lifetime stream of value.
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“My intent when I do price segmentation and charge different customers different prices is I also want to think about the lifetime value of a customer.”
– Mark Stiving
So, my advice, treat loyal customers really, really well, and don’t charge them more than other people.
We hope you enjoyed this memecast. If you have any questions or feedback, please email me [email protected].
Now go make an impact.
Connect with Mark Stiving:
- Email: [email protected]
- LinkedIn: https://www.linkedin.com/in/stiving/