Setting prices for different market segments
Your customers are likely diverse, and different customer segments may have different perceived values and price sensitivities. This section will explain how to segment your market and set different prices for different segments, a strategy known as price discrimination.
Segmenting your market
Market segmentation involves dividing your customers into distinct groups based on shared characteristics, such as industry, company size, or job role. To segment your market effectively, consider the following steps:
- Identify the key characteristics that differentiate your customers
- Analyze the needs, preferences, and price sensitivities of each group
- Determine the features and pricing that best align with each segment’s needs and willingness to pay
For example, a Salesforce AppExchange partner develops a sales enablement app. They segment their market into small businesses, mid-sized companies, and large enterprises...
