Every business must price what it sells. It’s inescapable and indispensable – and deeply misunderstood. But it doesn’t need to be that way, says marketing and monetization expert Marco Bertini.
Bertini, an ESADE professor recently named to the 2017 Thinkers50 Radar list of scholars likely to shape the future of management, explains that proper revenue strategy isn’t just economics; it’s psychology too. This realization is helping big corporations – the likes of Coca-Cola, P&G, GlaxoSmithKline, H&M and IBM – as well as small startups unlock opportunities to not only capture value, but grow it.
“Few signals are more powerful than a price when it comes to engaging consumers,” explains Bertini, who studies what he calls the “back end” of customer centricity. “Prices send unequivocal messages about what the firm believes in, what it thinks of its customers, and how it wants to interact with them. These messages can drive customers away, destroying value, or they can engage customers in ways that create new value.”
Stop seeing pricing as an optimization problem. Instead, embrace it as an opportunity to strengthen relationships and grow your brand.