Shoppers love dynamic pricing, but 25% of retailers are skeptical of its effectiveness | FierceRetail

As many as 65% of consumers are open to price changes throughout the day, especially if a product is reaching a sell-by date, according to a new report by Displaydata and Planet Retail RNG. And about half, 52%, are open to dynamic pricing if it is to price match, even though 25% of retailers are not convinced that customers will accept these price changes.

What retailers do agree on is that price agility can improve store efficiencies and margins (84%) and increase consumer loyalty (82%). Therefore, 78% of retailers want the ability to make price changes and offer better deals. But for those that use paper labels, 65% of retailers are not able to make fast changes that they want to.

“Despite being a logistical hurdle to make real time-price adjustments using paper based process, the process of manually changing paper price labels hasn’t changed in decades,” Paul Milner, marketing director for Displaydata, told FierceRetail. “Dynamic pricing is real-time pricing, and to keep up with the real-time nature of e-commerce, retailers must invest in the proper technology.”

In addition, the study showed that the right price can make or break an in-store sale for 80% of respondents. Only 43% of shoppers trust that the price on a display shelf will be the same at checkout. And another 53% believe that in-store prices are occasionally inaccurate.

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Shoppers love dynamic pricing, but 25% of retailers are skeptical of its effectiveness | FierceRetail.