Science of pricing customer development labs

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Slides from our Science of Pricing workshop at the 2013 Lean Startup Conference.

Tools to optimize price without sacrificing conversions.

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  • What are your ideas…Be respectful:EmailQuaraGoogle groupsLinkedIn GroupsFacebook posts
  • If you can’t convert paid traffic, pivot.
  • Science of pricing customer development labs

    1. 1. SCIENCE OF PRICING CustomerDevLabs.com
    2. 2. Nathan Founder Helix Labs Mark Justin Founder MovingWorlds.org Founder Nimbus Health
    3. 3. Nathan Founder Helix Labs Mark Justin Customer Development Labs
    4. 4. Customer Development Labs Helps { Founders Accelerators Corporations Practice Lean Startup
    5. 5. Science of Pricing
    6. 6. That’s Us.
    7. 7. Get to Know You
    8. 8. What is Success Today?
    9. 9. http://bit.ly/leanpricing
    10. 10. What does Demand Look Like?
    11. 11. Groups of 3
    12. 12. 3 Products… Lowest Price = Suspicious Generics Haircut Gas
    13. 13. “You get what you pay for”
    14. 14. “Get What you Pay for” Curve Units Price
    15. 15. 3 Products… Lowest Price = Good Deal Flights Landscaping Gas
    16. 16. “Good Deal” Demand Curve Units Price
    17. 17. Did you ever disagree?
    18. 18. different people = different curves
    19. 19. “Combo” Curve Units Price
    20. 20. Professor Min Ding Penn. State 2010: Journal of Retailing Price as an Indicator of Quality
    21. 21. Price Implies Quality
    22. 22. “Low Interest” in Quality Curve Units Price
    23. 23. “High Interest” in Quality Curve Units Price
    24. 24. “Actual” Demand Curve Units Price
    25. 25. “Actual” Demand Curve Quality Hump
    26. 26. Real Demand isn’t Blue It’s Pink
    27. 27. Optimal Pricing = More Revenue Optimal Pricing = More Customers
    28. 28. Is this true for Startups?
    29. 29. Garick Hismatullin Founder
    30. 30. Medical Consultations via Phone
    31. 31. Founders Institute $15
    32. 32. $25 8.5% $49 8% $99 10.5%
    33. 33. Yes. Startups have quality humps.
    34. 34. BONUS: Find your Hump Find More Customers
    35. 35. NEXT UP How to find your Hump
    36. 36. Reflection
    37. 37. 1 Takeaway
    38. 38. #LeanStartup BREAK @CustomerDevLabs
    39. 39. How to find your hump?
    40. 40. Price Testing
    41. 41. A/B Testing your Price
    42. 42. PRICE TESTING: 1. Build a landing page 2. A/B test price 3. Accept real credit cards
    43. 43. Questions
    44. 44. SECRET 1: Everyone gets the lowest price
    45. 45. Where is our Hump?
    46. 46. SECRET 2: Pre-Orders
    47. 47. What should we price test?
    48. 48. Who wants to find their hump?
    49. 49. Pick your team
    50. 50. 45 Minutes to Launch
    51. 51. Something like…
    52. 52. Go.
    53. 53. 45 MIN
    54. 54. 40 MIN
    55. 55. 35 MIN
    56. 56. 30 MIN
    57. 57. 25 MIN
    58. 58. 20 MIN
    59. 59. 15 MIN
    60. 60. 10 MIN
    61. 61. 5 MIN
    62. 62. 2 MIN
    63. 63. 1 MIN
    64. 64. DONE
    65. 65. NEXT UP: Driving Traffic
    66. 66. Reflection
    67. 67. 1 Takeaway
    68. 68. #LeanStartup BREAK @CustomerDevLabs
    69. 69. Driving Traffic
    70. 70. 3 Ways to Drive Traffic
    71. 71. Free Traffic Learn & Optimize Paid
    72. 72. FREE!
    73. 73. Give Your Friends a Script • Ask for advice • Be Grateful
    74. 74. Give Your Friends a Script Hey Friend of Friend, My friend is launching a new startup trying to solve ________. I’d love it if you can take a minute, take a look at its new site, and support it if it speaks to you. Of course, if you have any thoughts or connections, I’d be happy to connect you with the founder:______. Thanks a ton! -Friend
    75. 75. Posting to Groups • Be respectful • Be humble
    76. 76. Posting to Groups Not sure if this is appropriate for this group or not, but I’m passionate about solving the _________ (problem) and hoping for some advice. We’re launching ________ to help solve the ______, and I’d love your thoughts. If you can help, please take a look at the page, and shoot me any thoughts you have:
    77. 77. Responding to Quora/Forums • Add value • Give full disclosure
    78. 78. Responding to Quora/Forums Full disclosure, I run a startup which is trying to solve this problem. We just launched ___________ to make it easier to _________. It should help you solve this problem. And if you want to message me, I’d be happy to talk about your situation in greater detail and share the insights I’ve learn along the way.
    79. 79. The real kind… PAID
    80. 80. Paid Sources Problem-focused Google Adwords Emotional-focused Facebook Professional/Skill-focused LinkedIN Industry/Trend-focused Twitter
    81. 81. You have the tools.
    82. 82. Bringing it all together.
    83. 83. A B
    84. 84. Bounce pre-orders $5 x 1.4% = $.07/visitor $10 x 1.7% = $.17/visitor $20 x 0.9% = $.18/visitor before built product
    85. 85. Our Goals
    86. 86. GOAL 1 Why should you price test?
    87. 87. Find your Hump Find More Customers
    88. 88. GOAL 2 How to Price Test
    89. 89. PRICE TESTING: 1. A/B test price 2. Lowest price to all 3. Real credit cards
    90. 90. GOAL 3 Learn by Doing
    91. 91. You’ve done it.
    92. 92. Reflection
    93. 93. 3 Takeaways
    94. 94. 1 Next Step
    95. 95. NEXT UP: Q&A
    96. 96. Feedback
    97. 97. #LeanStartup QUESTIONS @CustomerDevLabs
    98. 98. Nathan Founder Helix Labs Mark Justin CustomerDevLabs.com
    99. 99. SCIENCE OF PRICING CustomerDevLabs.com

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