Is Your Organization Ready for Dynamic Pricing?
December 1, 2010 § Leave a comment
The concept of dynamic pricing has been thrown around by many arts organizations over the past few years. Stemming from a practice mostly used for airline tickets, dynamic pricing allows marketing professionals to be extremely responsive to demand- charging more when a concert is popular and ticket sales are moving swiftly, and charging less when ticket sales are stagnant. It’s a really smart idea for arts organizations, but it requires a bit more work and sophistication in your targeting strategies.
I think a bigger problem that arts organizations are grappling with that needs to come BEFORE dynamic pricing is considered is: What segments are we targeting? Who are they? What are their habits/ interests/ backgrounds? How price sensitive are they? I think there are many arts organizations out there who aren’t able to successfully do this basic step in their marketing strategy- and it will really hinder them from adopting ideas like dynamic pricing. Because how can you offer different prices to different groups if you have no idea who these groups are and what they want to pay?