Progressive Insurance did it again. From the company that introduced competitive price comparison, now comes “make your own price”. The company demonstrate commitment to customer experience as an on going innovative process and not as a one time destination.
I have once visited a restaurant in Tel Aviv where the menu did not have any prices. The owner asked customers to simply pay as much as they felt. He claimed that on the overall it was a more profitable way to do business. Although some customers took advantage of the offer and paid very little, the majority paid more than what he would have otherwise charged.
Hampton Inn Hotels is running their Money Back Gurantee campiagn for years already and only a small fraction of a percentage of their guests take advantage of it. Imagine what happens if you price your product by the value they deliver? what will the price be, if customers would have dictated it?
Option 1 – Customers will take full advantage and pay less
Option 2 – Customers will pay about the same as you would have charged
Option 3 – Custoemrs will pay more than what you would have charged
If Option 1 or 2 is representative of your case, it means that your expeirence is not that great and customers are voting with their wallets
If you fall in the catagory of Option 3, congratulations you mastered to art of exceptional customer expierences and customers acctually see and driver value from your products and services.
Let pricing be your guide. It is the ultimate customer action that tells you how great your customer expeirence is. It might be painful at the begining but it is the most honest insight you will ever get.
Lior Arussy
www.Strativity.com
