Dynamic Pricing: Set It and Forget It Marketing
By Meredith Simmons
2017 was a big year for Yoga Heights. The Washington, D.C.-based yoga studio expanded to a second location in December, the culmination of years of hard work and dedication to their yoga community.
Before expanding, it was essential for the studio to create a client base large enough to support a second location. To do this, Yoga Heights co-owner Jess Pierno had to do two things: retain her current customers and attract new quality customers.
To keep current customers engaged, Yoga Heights began using a branded mobile app to share the schedule and promotions to customers. The studio also started holding fundraisers and events for causes dear to its students, creating a community within the studio.
In order to attract new customers, Jess knew that she had to use any marketing tool available to her. Like many studios in major metropolitan areas, Yoga Heights tried a discounting platform to help drive foot traffic to the studio. Over time, however, Jess realized this solution was only netting $7 per student. Comparatively, Yoga Heights charges $18 for a single class drop-in, an $11 loss for each spot in a class filled through the third-party service.
"Dynamic pricing is a no-hassle tool."
Jess tried negotiating for a higher income per spot, but after being unsuccessful, she knew she needed another option to drive new customers to the studio—so she turned on MINDBODY’s dynamic pricing. Dynamic pricing, a software tool which adjusts price in real-time based on factors like class attendance and time until class, allows Jess to set a minimum and maximum cost for each empty spot—guaranteeing revenue if the spot is filled.
Since turning on dynamic pricing in a few months ago, Yoga Heights has brought in 150 new customers at a valuable price-point —a bonus for Jess, since the feature is working by itself.
“All of the dynamic pricing sales that we’ve had are not based on anything I’m doing.”
Because Jess drives her returning customers to use the Yoga Heights app, she forgot that her classes where being dynamically priced within the MINDBODY app.
“Dynamic pricing is a no-hassle tool. I set and forgot about it,” Jess said. “Anytime I don’t have to work harder or take away precious time to devote to something, that’s gold.”