Is it possible for us to use segmentation to set our pricing structure?

 
 
That’s an interesting question you pose Simone. it is possible, depending on the category that your business operates in. And of course every business and category varies.

Marketers use segmentation pricing strategies in many ways – a couple of very simple analogies can already be found at work in the CBD - many sandwich shops provide a discount for early lunch orders that help ‘ease the squeeze’ for the peak lunch-time period.

So-called ‘happy hours’ in bars and bistros and ‘early dining/pre-show dinner discounts’ are further applications of how segmentation assists to overcome the rush-hours and ‘ebbs and flows’ of business.

Another example appears possible for drivers in our most populous city, Sydney.

Recent media conjecture has firmly put the idea of a CBD congestion tax back on the agenda - which would be an ideal case study of how market segmentation can (literally) drive pricing.

Along with a ‘fairer’ toll-way payment system, the renewed calls for a review of our approach to traffic and pricing system is a classic example of how ‘customer segmentation’ might assist in better, and improved ways to travel.

The proposal for introducing a congestion tax in the CBD aims to segment the audience (different traffic forms, times of entry/exit and needs) and to then apply a cost against them.

Similarly, the introduction of a peak-pricing toll for travel on toll-ways has also been mooted, while recently we have seen a tiered pricing strategy introduced on the Sydney Harbour Bridge.

These are all examples of how segmenting the customer (by needs/usage/time of day etc.) can drive pricing policies.

While purists might claim such strategies create ‘one price for the rich and another for the poor’, a more positive attitude might be that ‘those who need it most or those who fail to plan ahead’ should pay more’. 

Marketing and public transport might seem odd bedfellows, but on closer scrutiny their future may be destined for future happiness and a win/win.

I hope this helps answer your question Simone.