My takeaways from “The Pitfalls of Pricing Algorithms”

I was listening to HBR’s podcast episode talking about “The Pitfalls of Pricing Algorithms” and had the following takeaways:

💡 Pricing algorithms can affect customers’ experiences, especially if they keep seeing different prices with every refresh of the page (dynamic pricing was given as an example)
💡 Setting up guardrails for dynamic pricing is critical to ensuring a good customer experience (📢 to Corrily whose algorithms make sure that the same user sees the same price each time)
💡 Changing your prices is much more than the numerical value; it involves psychological and sociological aspects that are often not addressed by pricing or data teams.
💡 It’s important to include other functions (i.e. marketing or customer success) to communicate pricing changes properly to customers.

Doing price experiments is scary. Remember how customers initially responded when Uber announced surge pricing?

On the flip side though, customers might just appreciate how you’re extending access to them. Check out Scrimba’s interview on our blog (https://corrily.com/blog/scrimba-interview) if you want more deets.

Increased revenue and wider accessibility, who doesn’t want that?