The use of personalised pricing is on the rise, but what does it actually mean?
essence, personalised pricing occurs if the price offered to a consumer is
based on information that is collected or observed about customers.
called price discrimination which is a well-established practice for businesses
is based on the assumption that all buyers are different and there is no “one
price fits all” model.
today are increasingly using technology to find valuable trends in consumer
behaviour to gain insights into when they buy, how they buy and why they buy.
Alongside a pricing tool,
this data is then used to create special offers and prices that encourages more
spending. The collection of such consumer data has also caused
controversy, but where it has been legitimately collected through a transparent
process, this data can be very useful to businesses to identify trends and
behaviours for personalised pricing. For example, retailers can collect details
of a customer's previous purchases made on the website.
can then offer personalised discounts, and are increasingly using information
collected about consumers in order to improve their pricing strategies.
transparent personalised pricing approach has the potential to benefit both the
consumer and the business and customers. If conducted correctly, it will
increase the revenues for the company and yield customer satisfaction along the