Pricing for effective monetization

An effective pricing process is about making your offer accessible and desirable to the right types of customers while optimizing your profit levels in the long-term. As in every process, there are some best practices in adopting a pricing process that focuses on monetization and making it in the market. Here are some guiding principles to get started:

Pricing strategy
  1. Align your offer structure with the categories of benefits that represent your different types of customer.

  2. Identify the right value metric that aligns your revenues with your customers’ benefits and structure your pricing using that particular metric.

  3. Then [re]configure your product offering to make your value metric work.

  4. Build in the caps, triggers, and fences that will deliver the right value or mobilize customers to other tiers as their businesses change. Remember, especially in digital, no behavior happens without a trigger.

  5. Finally, it’s as important to have a mobilization plan as having a monetization plan. You must have a plan for how you’ll move your lower-value customers into higher-priced tiers, and monetize them throughout their lifecycle. Mobilization doesn’t just happen.