As a business owner, determining the right price for your product or service is crucial for attracting and retaining customers. However, the challenge lies in finding the right balance between profitability and customer satisfaction. One way to address this challenge is by using a Price Sensitivity Meter (PSM) to gauge how sensitive your customers are to changes in pricing. In this blog post, we'll explore 5 steps to using ChatGPT for PSM and how it can help you make informed pricing decisions based on your customers' preferences and behavior.
1. Create a Survey
Tally is an advanced form builder that combines the ease of use of Notion. With Tally, you can build a form featuring the following questions:
At what price would you consider the product or service to be:
so cheap that you would doubt its quality?
a bargain (a good value for the money)?
a little bit more expensive but still consider its purchase?
so expensive that you would not consider buying it?
2. Email Survey
Consider using your preferred email marketing platform, such as Customer.io, GetResponse, ConvertKit, Sendinblue, Campaigner, or others.
- Target the appropriate audience for this type of survey to maximize the survey’s accuracy.
- Use a clear subject line that provides context, such as "RE: Your feedback on [Product Name]."
3. Collect Data
You can easily link Tally with Airtable (or Google Sheets) to automatically capture all submissions in a spreadsheet.
4. Paste into ChatGPT
Use the following prompt:
Using Van Westendorp pricing modeling, determine an acceptable price range for a product based on the given data. Use the terms PMC, PME, OPP & IDP in your answer and describe the calculation. The data is provided below as a table with four columns, each row is a customer answer:
5. Analyze Data
Remember: ChatGPT can assist, but it's not a substitute for your own judgement based on your knowledge of the product, market, and other factors.
Incorporating ChatGPT into your data analysis process for pricing sensitivity poll can provide valuable insights and help you make more informed pricing decisions. By analyzing customers' responses, preferences, and behavior, you can better understand their price sensitivity and adjust your pricing strategy accordingly. ChatGPT's natural language processing capabilities make it easy to gather and analyze data from a wide range of sources, including customer feedback, social media, and surveys. With the 5 steps outlined in this post, you can easily leverage ChatGPT for PSM and stay ahead of the competition by offering the right prices that are aligned with your customers' needs and expectations.