Join Tan and Tanja as they chat about the importance of transparency in pricing and how it can make or break a customer's decision to buy.
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Tan
Welcome to another episode of CMO Chat.
I'm Tan
Tanja
and I'm Tanya.
Tan
Let me ask you a question. How important is telling the truth in marketing?
Tanja
Very important. Okay. I mean, you should never lie.
Tan
Okay.
Tanja
Okay.
Tan
Okay, so let me give you an example. How much are these croissants?
Tanja
ööö? $0.75.
Tan
How do you know how much these croissants cost?
Tanja
No, I'm guessing I said $0.75.
Tan
Why don't you know?
Tanja
Because it gives a kilogram price.
Tan
All right. I see this all the time in Finland, and I wonder if you notice you go there in the UK or in the US, It's the opposite. They give you whatever is the lowest price, and then you have to read the small print to get the real price. Like you'll see like a brand-new iPhone, and you'll see like, you know, 999.
Yeah, but the real prices, 1300.
Tanja
Why is that?
Tan
Because they want to show you the lower price.
The lower price, the lowest option possible.
But here I see croissants in the shop, and then I see €15 next to them, right?
Tanja
Yeah.
Tan
Look here. And you don't know how much these croissants are. And I'm wondering, is this an indication of a wide scenario where, yes, I'm telling the truth, The price of these croissants is €15 for a kilo. But how is that useful for me?
Tanja
I think one that you said in the last season that tell the truth, but make it fascinating. Yes. Yes.
Tan
This is a great example of that. This is just telling the truth and not making it fascinating.
Tanja
Yeah, it makes me think of B2B marketing. Like these days, it's very important to be transparent with the pricing for instance, and you don't want your customers like having to dig around and figure out what the show is a product includes and what the pricing will be, because it just makes it more difficult for them. And we just want to make it as easy as possible for a customer to buy from us.
Tan
Yeah, that's the bottom line. How are we…. Is this, even though this information I'm piling on you is true, is it helpful?
Tanja
Yeah, it's not. That's a good point.
And it reminds me actually, always about the German way of doing marketing, because I used to do a lot of, like, marketing in the German-speaking countries, and there is all about features. It's about this is a software, and it makes it helps to do this. It's not about it tells the truth, but it's like, I don't care.
I just want to know what the outcome will be when I start using your products and services.
Tan
It's almost lazy. I'm just going to tell you true things and I want you to just figure out, make your own, make it useful for yourself.
Tanja
And make it easy for making it easy for the other person. Yeah, it's part of the communication. I would say.
Tan
It's part of marketing. Yeah.
Tanja
Yeah.
Tan
Cool. I'm glad you agree with me that the price is weird. All right. Thank you, Tanja.
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