To command premium pricing, you have to ensure the value delivered exceeds customer expectations. Go for WOW!
All business leaders and certainly marketers know that customers have to realize fair value for products and services delivered. It is universally accepted and foundational to proper product positioning. With premium prices, customers naturally demand a higher level of satisfaction. The higher the premium, the more you have to “WOW” the customer.
One organization that has mastered the WOW required for premium pricing is Disney. I just returned from a family vacation at Walt Disney World in Orlando. Disney is very familiar with both sides of the pricing/value equation. They definitely command premium pricing. In return, they deliver an exceptional experience for their guests – the WOW.
Everything about the Disney experience is first class. The parks are squeaky clean. The “Cast Members” (staff) are all extremely courteous. The entertainment is exceptional. Most importantly, the smiles on kids’ faces are “priceless”. Everything about the experience seems to be as advertised – it’s Magic. (For the record – Magic is even better than a regular WOW!)
For us, the magic began long before the trip, right after we made the reservations. We received personalized guides telling us about our stay. This helped build the anticipation, and started justifying the premium they command. About a month before the trip, we received our “Magic Bands“. These arrived in a beautiful package (Apple-Like) that was personalized by name in each family member’s specified favorite color.
These wrist bracelets are everything you need to make your way around Disney:
- It is your room key
- Your ticket to the parks
- Access to “Fast Pass” priority ride access
- Your charge account (with PIN) tied to your credit card
These Magic Bands are so much “fun” my kids absolutely loved them. They felt so independent. Sure opening the room was cool, but they even talked us into letting them “buy their own souvenirs” at the shops. Think of the genius in that! Empowering kids to buy things at shops just because it is “fun” to use the Magic Band. Amazing! Note: Pricing was not a consideration in the purchasing decision process in this instance!
These Magic Bands are a small part of the WOW at Disney. They are just one of the myriad things Disney does to deliver an amazing experience. They have positioned themselves as “best in class” and they really deliver. Despite the premium pricing, you truly feel good about how you spent your money. See Purchase Reinforcement post.
There is truly magic in how Disney does its marketing.