Ep 13: The Theory of Innumeracy: How a Math Challenged America affects your Pricing Strategy
In America many people are math challenged. Math doesn’t come easy, and complicated math is even more challenging. When I say complicated math, I am not talking algebra or calculus, rather I am referring to applying percents and fractions. This is the theory of innumeracy. Innumeracy is to numbers as illiteracy is to reading. And while many people struggle with numbers, ironically many marketers’ pricing strategy includes applying percents to calculate the deal. Innumeracy is the topic for this podcast and how it impacts promotional pricing.
In this podcast I break down five mistakes marketers are making in regard to innumeracy. The irony is marketers think big numbers lead to big results. Seems logical, except if people can’t calculate the deal they are not likely to act on it. I will discuss five common mistakes and then offer up four pricing solutions that counter innumeracy in America. The solutions focus on simplifying the math, making it obvious, making it easy to buy, and finally making it highly relevant. The solutions are not overly complicated, rather they are simple strategies to keep the math easy and increase the effectiveness of your marketing.