Pricing Strategies
This is the process of determining what a company will charge for its products or services.
What is pricing?
This term describes an estimate or projection of future sales revenue.
What is a sales forecast?
This term refers to income generated from normal business operations.
What is revenue?
These are key data points used to measure how well a business is performing.
What are key metrics?
These are the goals that guide how a company sets its prices.
What are pricing objectives?
Forecasting based on expert opinions, judgment, or intuition is called this.
What is qualitative forecasting?
These are the various sources of income that a company earns, such as product sales or subscriptions.
What are revenue streams?
The cost a company incurs to attract and gain one new customer.
What is Customer Acquisition Cost (CAC)?
This pricing term refers to the actual amount paid by a customer for a product.
What is the exchange price?
Forecasting that uses numerical data, historical trends, and formulas is known as this.
What is quantitative forecasting?
This pricing model earns predictable income from repeat customer payments, such as subscriptions.
What is recurring revenue?
This metric measures the total revenue a business expects to earn from a single customer over their relationship.
What is Customer Lifetime Value (CLTV)?
This term describes how much profit a company makes from sales after costs, shown as a percentage.
What is profit margin?
The time period covered by a forecast, such as weekly, monthly, or yearly, is called this.
What is the forecasting time frame?
Selling a single product for a one-time payment produces this type of income.
What is one-time revenue?
This metric tracks the percentage of people who complete a desired action, such as making a purchase or signing up.
What is conversion rate?
A company trying to undercut competitors to increase its percentage of total market sales is focused on increasing this.
What is market share?
Economic conditions, customer demand, and competition are all examples of these influences on forecast accuracy.
What are forecasting factors?
A company that earns money both from subscriptions and ad sales has multiple what?
What are revenue streams?
This percentage shows how many customers stop doing business with a company during a specific time period.
What is churn rate?