Pricing, price testing

SUMMARY: Are your email promotions proven to be effective, or do you fall back on the same offers because it’s the way you’ve always done things?

Read how a marketing team answered this question for themselves by changing their approach to discount offers. Rather than offering a straight percentage discount, they set a new, low price for minimum orders and watched sales jump 25% for a crucial shopping event. read the complete case study

SUMMARY: When your customers’ buying habits shift, you have to respond or risk losing those customers for good. But it’s vital to adapt without compromising your brand.

Read how a healthy-living retailer responded to growing price sensitivity among its customer base by increasing the number of low-cost products they offered. We outline the four tactics they used to make the change, which helped boost their site conversion rate 11%. read the complete article

SUMMARY: "The top three factors influencing consulting firms pricing are the level of professionals and anticipated amount of time needed to complete the work, and the value of the work to the client." "The least important factor was whether a client has worked with the firm in the past (25% "very" or "extremely" important), whereas the firm's relationship with the prospective client mattered more than twice as much (59% "very" or "extremely" important)." view the complete research record

SUMMARY: Asking someone to explain why they made a decision often evokes a rational, reasoned reply. The person may completely believe their answer – but they might be completely wrong.

Read how a behavioral economics professor from Duke University has uncovered the irrational nature of many decisions -- and how to apply these behavioral trends to your marketing. Among his insights: Focus groups are bunk. read the complete interview