For many people, promotional offers, discounts, coupons and deals are fun and typically lead to a satisfying feeling of value. However, savvy merchants know that many of their customers could not be bothered to search, collect and redeem offers. As a result, it gets tricky for merchants to keep both customer segments happy...and coming back!
A recent article in the Harvard Business Review addresses the concept of self-segmenting fencing. The idea is that consumers reveal their willingness-to-pay by selecting either the high or low pricing options. That is followed by a tactical "fence" that separates the two segments. For example, that fence could be a coupon or an email list. When done right, premium customers should enjoy at least one important attribute that the low-price seekers don't get. The grass should never look much greener on the other side of the fence!
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