Ankur Sharma, a senior product director with over 11 years of experience, discusses various pricing strategies such as cancellation protection and dynamic pricing. He emphasizes the importance of understanding consumer behavior through psychological frameworks and optimizing user experiences by minimizing complexity in decision-making. The document includes insights on leveraging visual analytics to track user interactions and different approaches to pricing for growth and profit.

1. Pricing
Ankur Sharma

2. @ankurdinesh
About me
● Sr Director - Products
● 11+ years of building & scaling products
● Help startups on growth, platform issues and product.
● Alumni:

3. Right
Pricing is

4. Marketing
Supply &
Revenue
Customer Service
Product
Product
Product

5. @ankurdinesh
Friends?
○ Data
○ Psychology (driven user
behavior)

8. @ankurdinesh
Pricing led Products
1. Cancellation Protection
2. Book Now, Pay Later
3. Bundling
4. Fare Family
5. Branded Fares
6. Dynamic Pricing
7. Hourly Booking

9. Deep Dive

10. @ankurdinesh
Learn how to read P&L
GOOG P&L : https://finance.yahoo.com/quote/GOOGL/financials/

11. Cancellation Protection

12. Cancellation Protection : P&L
Cancellation Protection (CP) Attachment 8%
Tickets cancelled with CP 32%
Cost of CP 299
Average Transaction Value (ATV) 3700
Avg Cancellation Cost 2700
Daily Txns done 16000
Convenience Fee 270
Amount from CP Tickets 5464320
Amount paid on Cancellation to Users 1515520
Amount paid to Airlines 1105920
Income 2842880

13. @ankurdinesh
System One & System Two Brain
System 1: Subconscious emotional processes
(95%)
Older brain, always on, stubborn, automatic
responses.
System 2: Conscious, rational processes (5%)
Creativity, allows us to think into the future, not
always on, slow responses.

14. @ankurdinesh
Optimise for System One
● Pain: It’s looking to avoid pain…
● Fear: “Only 5 rooms left”
● Emotion: Today’s best deal
● Ego: “Your ride, on demand” (Uber)
● Contrast: Before and after photos

15. @ankurdinesh
System Two : For rationally superior offering
● Pleasure
● Self-control
● Easily depleted
● Easily distracted

16. Book Now, Pay Later

17. @ankurdinesh
Don’t make people think
● When you make people think, don’t
be ambiguous, confusing
or make things hard : Don’t have
Sys 1 & 2 clash
● Be very careful about what
you make people focus on
● System One is always on, stay
in it as much as possible

18. @ankurdinesh
Don’t make people think
● Use Visual Analytics to understand what
people are doing (not saying)
○ Hotjar : http://bit.ly/2qg3jqj
○ Appsee : http://bit.ly/2OdlhDw
○ Mouseflow : http://bit.ly/2qbbFzE

19. Appendix

20. @ankurdinesh
Kinds of Pricing:
● Growth led pricing
● Profit Led pricing