Post by account_disabled on Dec 6, 2023 4:22:15 GMT
Which is the most effective? At first glance, it would seem that the fastest-growing businesses are those that acquire more customers. But a study of 500 SaaS companies shows C Level Executive List that’s not true. Kevin Hale believes that if you spend 1% more on acquiring customers, you will see a 3.32% return on that investment. If you bet on customer retention, the return will increase to 6.7%. On the other hand, if you decide to optimize your pricing and the way you bill your customers,
the return will jump to 12.7%. This is why pricing is so important in any business. So let’s explain what pricing is and how you can use it to grow your company. A pricing policy is nothing more than a strategy for setting prices for products and services. In other words, it is a set of actions through which business owners can determine the level of offered prices, how they are set, and the rules for granting discounts. As you already know from the introduction, a pricing policy contributes to the overall growth of the company. And this is possible because taking care of your price list achieves three important goals. Maximizing profit Pricing policies have a direct impact on a company’s profitability. Let’s take a look at the fast-food restaurant chain McDonald’s. Through its “value menu”,
McDonald’s burgers became attractively priced and accessible to the masses around the world. This was certainly one of the strategic elements that helped this U.S. company achieve economies of scale and contribute to increased profits. Increasing market share Pricing can help companies reach new customer segments and increase overall market share. For example, GetResponse, a Polish email marketing company, makes its platform available in multiple pricing options to meet the needs of its customers. We see a similar practice in many other industries, such as the automotive industry. Mercedes, for example, offers sports and luxury cars in addition to standard and expensive passenger cars – see AMG and Maybach.
the return will jump to 12.7%. This is why pricing is so important in any business. So let’s explain what pricing is and how you can use it to grow your company. A pricing policy is nothing more than a strategy for setting prices for products and services. In other words, it is a set of actions through which business owners can determine the level of offered prices, how they are set, and the rules for granting discounts. As you already know from the introduction, a pricing policy contributes to the overall growth of the company. And this is possible because taking care of your price list achieves three important goals. Maximizing profit Pricing policies have a direct impact on a company’s profitability. Let’s take a look at the fast-food restaurant chain McDonald’s. Through its “value menu”,
McDonald’s burgers became attractively priced and accessible to the masses around the world. This was certainly one of the strategic elements that helped this U.S. company achieve economies of scale and contribute to increased profits. Increasing market share Pricing can help companies reach new customer segments and increase overall market share. For example, GetResponse, a Polish email marketing company, makes its platform available in multiple pricing options to meet the needs of its customers. We see a similar practice in many other industries, such as the automotive industry. Mercedes, for example, offers sports and luxury cars in addition to standard and expensive passenger cars – see AMG and Maybach.