The Game with Alex Hormozi
What To Do When Your Pricing Model Doesn't Match Your Avatar | Ep 865
Apr 7, 2025
Discover how misaligned pricing models can lead to customer churn and hamper business growth. Explore real-world examples to understand the importance of tailoring services to match customer expectations. Learn actionable strategies to refine your pricing and enhance customer retention, ensuring sustainable success in your business journey.
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Quick takeaways
- Aligning your pricing model with the customer avatar is crucial to reduce churn and ensure customer satisfaction.
- Deciding between customizable and standardized services affects scalability and retention, highlighting the importance of finding the right business model.
Deep dives
Identifying Customer Mismatch
A key issue in small businesses is the disconnection between the services offered and the customer avatar being targeted. Businesses often find themselves onboarding new customers only for them to leave shortly after due to a mismatch in expectations regarding services and pricing. If the business model and pricing do not align with the needs and financial capabilities of the customer segment, especially with very small business owners, retention becomes a significant challenge. Ultimately, this misalignment leads to dissatisfaction for both the team and the customer, resulting in a high churn rate and the need for constant customer acquisition.
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