Off late, I’ve been noticing how growing companies are really taking the effort to localise their product and marketing for new markets which is great. However, what’s concerning is that only the large companies are really paying attention to localised pricing. Think Spotify, Uber, Netflix, Apple Music, and the likes.
A lot of other companies are missing a huge opportunity simply because they’ve outpriced themselves. You might have a great product or app, but if it is sold in US Dollars or Euros to an Indian or Vietnamese audience, the value simply just doesn’t add up. After all, the purchasing power just isn’t the same.
Localised pricing implies more than just changing the currency of transaction — price points, CAC, LTV, and more. Even enterprises are beginning to realise this and have started localising pricing from their earlier approach of ‘one size fits all’.
“Localizing your pricing builds trust between you and your customers”Tweet
It takes time to get it right but it’s worth the effort in the long run. It’s harder (and probably costlier) to recover from a position of being perceived as not having value than it is to spend some time researching the new market and supplement your other localisation efforts.
Remember the 4 P’s?
Here’s a great article I recently read that goes into great depth on this topic.