In today's episode,  we're looking at SAAS pricing and tiered pricing - the good-better-best option.   What is the impact of tiered pricing on market segmentation and consumer behaviour?   In today's episode, we are surfing the web. We are joining the information superhighway. We're looking at, I suppose the very common method that pricing is shown on many software as a service, SaaS style businesses. I think we're all used to seeing them by now. Three options: When some on a month to month you're shown very often a cheap option; Which doesn't have all the bells and whistles. Something like a beginner or an intro or something like that; Then you often have the one in the middle. That very often seems to be highlighted and pointed out. That tends to be most of the benefits kit seems to cater to the vast majority of people. Then you tend to have a third option. A bigger option with even more benefits that maybe doesn't suit everyone and that can be the enterprise value. So I think we'll just talk around this today. In terms of pricing, you may be aware that this concept is often referred to in terms of the Good-Better-Best Pricing, or Tiered pricing. Can even be explained in technical terms as Differentiated pricing. So you can differentiate pricing based on product attributes, features of the products. Some people look at the features and benefits of the products to differentiate into a good-better-best system. Other companies alternatively look a little bit further and they think, “how do our customers view these products? How do they use these products?”.Looking at an example there would be like a mobile phone company. Looking at good-better-best in terms of data usage. How much data a customer would use? Then would cut off those pricing tiers based on data usage. Obviously, if we look at the evolution of the mobile phones' tiered pricing, we can see now that got a little bit more sophisticated with their tearing. One reason for that was because customers didn't really like the fact that they were tearing the pricing, capping pricing and limiting their data. So what they did actually is increased and made most of their data unlimited. And used other things to other features and benefits to entice customers to buy different phone options. So obviously here now I've even touched upon that word entice. What is tiering all about? Well, underlying all of that is that is a deep-rooted sort of psychological pool using pricing to draw people's attention to different options.   I think there's there are two topics that are Joanna's discussed and I think they're both very relevant. The first one is clearly segmentation. You're not using a sales team. You're not using the customer's service team, maybe making phone calls. But you're selling predominately through a website, online, low human interaction in many instances. So the classic knowing your customer, understanding their value drivers that aspect is harder to do. And so, the segmentation strategy, the tiering is segmenting that market. So that you can charge different amounts for fundamentally the same thing with slight nuances obviously. But you're trying to tier it by stripping away certain aspects to cater to certain customers. Clearly, with that, I think we'll get to this a bit later. That means you really need to know what the value drivers are and that involves understanding why your customers use your product. Understanding who they are. Trying to categorise them in a way that's optimal. Because you can't charge you kind of infinite numbers of variations on this online format. It has to be reasonably simple and I suppose that is the classic three. That's positive, that aspect. The other thing Joanna touch on there, obviously, the other stuff, the psychological aspect of stuff. I think we've covered this in previous episodes stuff like Cialdini I think his name is who did stuff like influence and they're pushing you towards the centre. Something like