This article outlines the process for establishing and managing distinct pricing options for your products, enabling you to cater to diverse customer segments and optimise revenue potential. By creating different pricing tiers, you can offer varied levels of access, features, or volume discounts, ensuring your product appeals to a broader market while maintaining clear value differentiation.
Overview
Product Pricing Tiers allow you to define multiple pricing structures for a single product or service. This functionality is crucial for tailoring offers to different customer needs, such as providing a basic entry-level option, a feature-rich premium package, or a discounted rate for bulk purchases. Implementing well-defined tiers can enhance your product's market appeal, improve conversion rates, and strategically position your offerings to maximise profitability.
Accessing This Feature
To manage Product Pricing Tiers:
Log in to your Launchpad account.
Navigate to the Products section from the main menu.
Select the specific product for which you wish to create or modify pricing tiers.
Within the product's management interface, locate and click on Product Pricing Tiers.
Using This Feature
Follow these steps to effectively set up and manage your product pricing tiers:
Initiate Tier Creation: Once on the Product Pricing Tiers page for your selected product, click the "Add New Tier" button. This action will open a configuration panel for your new pricing option.
Define Tier Identity:
Tier Name: Assign a clear, descriptive name (e.g., "Standard Access", "Premium Experience", "Wholesale Rate"). This name will be visible to your customers.
Internal Reference (Optional): Provide an internal identifier for your organisation's tracking purposes, if required.
Description: Write a concise description outlining what this tier includes or offers. Highlight key differentiators from other tiers.
Configure Pricing Model:
Pricing Type: Select the appropriate pricing model for this tier. Options typically include:
Fixed Price: A single, set price for the entire product offering within this tier.
Per Unit/Participant: Price is calculated based on the number of units or participants selected by the customer.
Tiered Volume: Price adjusts based on quantity ranges (e.g., $X for 1-10 units, $Y for 11-50 units).
Base Price: Enter the numerical value for the base price according to your chosen pricing type.
Currency: Ensure the correct currency is selected for this tier.
Specify Inclusions and Exclusions:
Use the designated fields or checkboxes to list specific features, services, or items that are included with this tier.
Conversely, note any elements that are explicitly excluded or only available in higher tiers. This helps customers understand the value proposition.
Set Availability and Visibility:
Status: Toggle the tier between "Active" (visible and purchasable) and "Inactive" (hidden from customers).
Availability Dates: Define a start and end date if the tier is time-limited or promotional. Leaving these blank will make the tier permanently available unless manually deactivated.
Visibility Rules: Configure conditions under which this tier becomes visible (e.g., only for logged-in partners, specific customer groups, or after a certain quantity is selected).
Add Restrictions and Limitations (If Applicable):
Minimum/Maximum Quantity: Set limits on the number of units or participants a customer can purchase under this tier.
Booking Window: Define how far in advance or close to the experience date this tier can be booked.
Capacity Allocation: If applicable, allocate a specific portion of your product's total capacity to this tier.
Review and Save: Carefully review all configured settings for accuracy. Once satisfied, click the "Save Tier" or "Publish Tier" button to apply your changes.
Order Tiers: If you have multiple tiers, you can usually drag and drop them to reorder their display on your customer-facing product page. This allows you to present options logically, often from lowest to highest value.
Test Implementation: After saving, it is highly recommended to preview your product page or conduct a test purchase to ensure the pricing tiers are displayed correctly and function as intended for customers.
Key Capabilities
The Product Pricing Tiers feature provides the following core functionalities:
Flexible Pricing Models: Configure various pricing structures, including fixed rates, per-unit charges, and sophisticated tiered volume pricing.
Unlimited Tier Creation: Establish an unlimited number of distinct pricing tiers for each product, allowing for granular market segmentation.
Customisable Descriptions: Provide detailed descriptions for each tier, clearly articulating the value, inclusions, and target audience.
Dynamic Availability Controls: Set specific start and end dates for tier availability, facilitating promotional offers or seasonal adjustments.
Visibility Management: Control which customer segments can view and access particular tiers, enabling exclusive offers for partners or specific user groups.
Duplication for Efficiency: Quickly duplicate existing tiers to create new ones with minor modifications, streamlining the setup process.
Preview Functionality: Review how your pricing tiers will appear to customers before publishing, ensuring optimal presentation and clarity.
Integration with Product Inventory: Link tiers to specific inventory allocations where applicable, ensuring accurate capacity management.
Best Practices
To maximise the effectiveness of your product pricing tiers, consider these professional guidelines:
Conduct Market Research: Thoroughly understand your target audience segments, their needs, and their willingness to pay for different levels of service or features. This insight will inform your tier structure and pricing strategy.
Limit Tier Complexity: While the system allows for numerous tiers, aim for simplicity. Three to five distinct tiers are often optimal, as too many options can overwhelm and confuse potential customers, leading to decision paralysis.
Ensure Clear Differentiation: Each tier must offer a distinct value proposition. Customers should easily understand what they gain by choosing a higher tier and what they miss out on by selecting a lower one. Avoid subtle differences that make choices ambiguous.
Adopt Intuitive Naming Conventions: Use clear, descriptive, and consistent names for your tiers (e.g., "Basic", "Standard", "Premium"; or "Individual", "Group", "Corporate"). This aids customer comprehension and navigation.
Highlight Value, Not Just Price: For each tier, focus on articulating the benefits and unique features it provides, rather than just listing the price. Emphasise how each tier solves a specific customer problem or enhances their experience.
Regularly Review Performance: Periodically analyse sales data and customer feedback for each tier. Identify which tiers are performing well and which may need adjustments in terms of pricing, features, or positioning. Market conditions can change, necessitating updates.
Utilise A/B Testing: If your platform supports it, consider A/B testing different tier structures, pricing points, or descriptions to empirically determine which configurations lead to better conversion rates and higher revenue.
Maintain Consistency: Ensure that the messaging and features associated with each tier are consistent across all your marketing channels and customer touchpoints. Discrepancies can erode trust and confuse customers.
Support
For further assistance, please contact [email protected].