OnDemand WTP Pricing Research

Will personalized pricing end retailers’ use of dynamic pricing? | RetailWire

While sometimes used interchangeably, dynamic and personalized pricing are not the same thing.

In dynamic pricing, the price generally changes according to variables specifically not customer-related. Prices might be altered based on time of day, available supply, competitors’ prices, or maybe, just maybe, the volume of traffic to a product detail page. The price may change, but everyone will see that price no matter who they are, so long as they are on the product detail page at the same time.

With personalized pricing, it’s entirely about who the customer is. There is the price on the page or on the shelf, and then there is “your” price — the unique offer you received.

Personalized pricing does not mean you need to know everything there is about a customer. If an unknown shopper comes back to a shopping cart item five times but hasn’t purchased, an offer to knock 10-percent off the price — just for that shopper that one time — may net a purchase that might otherwise have been lost.

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Will personalized pricing end retailers’ use of dynamic pricing? – RetailWire.

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