Relationship PricingThe next revolution in retail financial services marketing? |
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The consolidation in the financial services industry along with other market changes may be driving a quest for new pricing paradigms that shift the focus from individual product pricing toward more relationship oriented approaches. Financial services, however, is a complex business that is unlikely to be generally conducive to simple approaches such as “bundled pricing.”
Loyalty programs are more likely to be an effective avenue to relationship pricing in financial services.
Relationship-based Pricing
Relationship-based pricing is a system of pricing whereby the prices or products and services depend on an individual or household’s overall product and service purchases rather than being determined on a product-by-product basis (i.e., overall purchase levels do not impact individual product level pricing).
The goals of relationship pricing include:
- Attracting new customers who otherwise might not have made a purchase
- Expanding the breadth of products and services provided to existing customers
- Retaining existing customers when competitors offer similar relationship pricing programs
As used in this document, “Deloitte” means Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Tax LLP, and Deloitte Financial Advisory Services. These entities are separate subsidiaries of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.
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Relationship Pricing
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