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"segmenting customers by behavior and price sensitivity" Similar to what is done by web hosting providers. Offering more disk space for more money when the ave
by larrys 14y ago
"segmenting customers by behavior and price sensitivity"
Similar to what is done by web hosting providers. Offering more disk space for more money when the average customer isn't going to come close to using the base allotment.
Also, we did this with domain redemptions. We used to charge a fee and process them all at about the same speed (Which was pretty quick usually within an hour or so.) We changed the order process so that the default turn time would be 12 to 24 hours for $0 upcharge. Then, say 8 to 12 hours for $15 more. Then $25 upcharge for 2 to 8 hours.
The response was instant and about 60% of the people paid the $25 charge. Not only that but if people are really upset we can give them the quick service for free (because it doesn't cost us anymore) and it makes them really happy. (Like an upgrade to an empty seat in 1st Class.)