Behavioural Pricing Optimisation
Price is the most significant factor driving profitability, yet it remains underdeveloped in most companies. A study conducted by Wharton surveyed over 2,000 businesses and consistently found that price increases lead to higher profits compared to other strategies like increasing sales or cutting costs. An optimised pricing strategy can quickly translate to improved bottom-line results. According to Bain, at least half of all companies are leaving money on the table when it comes to pricing optimisation. Behavioural pricing or psychological pricing provides a rapid way to optimise your revenue and profit.
Using Behavioural Science
To enhance the pricing of your product without negatively affecting customer perceptions, you can leverage behavioural science principles such as loss aversion, anchoring, framing, scarcity, bundling, unbundling, and tiering. Applying these principles requires real user testing and behavioural monitoring as traditional self-report research methods will not be effective for such testing. Some organizations may conduct rapid tests through their websites or stores, but this can be costly. A more cost-effective approach is to utilize a behavioural testing platform that allows for rapid testing before integrating solutions into your website or store.
Rapid Behavioural Pricing Testing
We have developed a unique testing platform that enables us to apply behavioural science and conduct rapid tests with your target customer base. Results are delivered withing days ready for implementation across your channels. This minimises risk and maximises returns from multiple tests. We worked with a one leisure group and helped them increase profits by 5% in just 3 months without impacting customer satisfaction.
Interested to find out more? Get in touch today!
