Could This Pricing Strategy Be the Key To Winning Over Consumers?
For many consumers, the end goal is [usually] locating the best price for whatever product they’re after. Whether it’s spending a day walking from store to store, oscillating between pages and pages of the same product available at different e-commerce sites, or biding their time for weeks, or even months, waiting for the illusive “perfect deal” to appear as if by magic, some consumers will stop at nothing to make sure they get their money’s worth.
This may be why there has been a growing focus on the future of dynamic, “customized” pricing. The concept is nothing new and is often seen in cases where companies have a combination of omni-channel pricing and channel-specific pricing, approaching each customer situation differently rather than having a set price across the board. Many companies will give discounts or promo codes to specific shoppers, while others will offer discounts for larger orders or for long-term loyal customers. And while this is all well and good, the possibility of looser restrictions on internet service providers regarding how they sell consumer data could have retailers paying big just for the ability to tailor their prices according to very specific customer information markers.
These markers could be anything from financial information and medical history, among others. With the advancement of at-home virtual assistants like Amazon’s Alexa or Google Home, the voices of customers could technically be analyzed to figure out what kind of mood or state of mind they’re in. Going further, with Amazon patenting technology that would allow you to log in to your account (or make purchases with) selfies taken on your phone, dynamic pricing could go a step further and use analytical facial recognition to determine the same real time markers mentioned above. Although this may seem like the plot for an episode of Black Mirror, these technologies are not that far off. The question is, how will consumers react to these changes?
So what does this mean for a small to medium business owner? The concept of dynamic pricing is nothing new, and it’s fairly safe to say that you’re probably already involved in some form of simple customized pricing. That said, these kinds of technologies could be a huge bonus for drawing in customers to your business, no matter what you sell or what service you provide. The thing to remember is that even the most loyal customer will (in most cases) take the better deal.
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