Performance-based pricing: You only get paid if you generate value for your customers.

Summary: Imagine a brand of rehydration drinks that decides to charge only if the consumer really feels that they have quenched their thirst. This strategy, while bold, underscores the complexity of performance-based pricing. This model poses significant challenges; For example, there’s nothing stopping customers from claiming not to have rehydrated just to avoid paying. It … Read more

The Power of Subscription Pricing: How to Transform Your Business

In a world where accessibility and flexibility are valued more than ever, the subscription pricing model has emerged as a strategic solution for businesses looking to strengthen long-term relationships with their customers. This model is mainly distinguished by allowing access to products or services in exchange for a recurring payment, which transforms one-time purchases into … Read more

Stop Calculating ROI for Your Campaigns and Focus on ROMI Instead.

Measuring Return on Investment (ROI) has been the preferred tool for evaluating the effectiveness of various marketing investments. However, its use can lead to misinterpretations. This is where Return on Marketing Investment (ROMI) emerges as a more precise and revealing alternative. Below, I describe what, in my opinion, are the most common errors when using … Read more

The Hidden Dangers of Discounts and How to Effectively Manage Them

Recently, I was able to evidence that more than 70% of brands had some form of discount in a research I did on women’s jeans in Colombia. In the competitive world of marketing and sales, discounts have become, apparently, the main strategy to attract customers and increase short-term sales. However, the frequent implementation of deep … Read more

The Rise of the Pay-As-You-Go Pricing Model and Its Transformative Power in Business

The “pay-per-use” or “pay-as-you-go” pricing model allows customers to pay for a product or service based on their actual usage, rather than paying a fixed amount periodically or a price for a bundle of products or services that are not always used. For customers, it is an attractive offer because the initial price is usually … Read more