How do you overcome customer resistance to yield management pricing?

1 Explain the rationale

One of the main reasons customers resist yield management pricing is that they don't understand why prices change so frequently and dramatically. To overcome this, you need to explain the rationale behind your pricing strategy in a clear and honest way. You can use analogies, examples, or stories to illustrate how yield management pricing works and how it benefits both you and your customers. For instance, you can compare it to airline tickets, hotel rooms, or movie tickets, which are also subject to yield management pricing. You can also emphasize how it allows you to offer lower prices during off-peak times or seasons, or how it enables you to provide more value-added services or amenities.

2 Segment your customers

Another way to overcome customer resistance to yield management pricing is to segment your customers according to their needs, preferences, and willingness to pay. By doing this, you can tailor your offer and your message to each segment and create a more personalized and relevant experience. For example, you can segment your customers by demographics, behavior, location, or loyalty. You can then use different channels, platforms, or media to reach them and communicate your value proposition. You can also use different incentives, discounts, or rewards to encourage them to book or buy at the optimal time or price.

3 Be transparent and consistent

A third way to overcome customer resistance to yield management pricing is to be transparent and consistent in your pricing policies and practices. You need to avoid any hidden fees, charges, or conditions that may surprise or frustrate your customers. You also need to avoid any sudden or drastic price changes that may undermine your credibility or reputation. To achieve this, you need to communicate your prices clearly and prominently on your website, app, or other channels. You also need to explain any factors that may affect your prices, such as demand, availability, or seasonality. You also need to follow your own rules and guidelines and apply them fairly and consistently across all customers and situations.

4 Provide value and flexibility

A fourth way to overcome customer resistance to yield management pricing is to provide value and flexibility to your customers. You need to show them that your prices reflect the quality, benefits, and features of your offer and that they are getting a fair and competitive deal. You can do this by highlighting your unique selling proposition, your competitive advantages, or your customer testimonials. You can also provide value-added services or amenities that enhance your offer and differentiate you from your competitors. Additionally, you can provide flexibility to your customers by offering them options, choices, or alternatives that suit their needs and preferences. For example, you can offer them different packages, bundles, or tiers that vary in price and value. You can also offer them cancellation, rescheduling, or refund policies that reduce their risk and uncertainty.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?