Retailers that personalize prices can benefit as well as their customers.
What if shelf prices meant little – and customer relationships with the store meant more -- in terms of what people pay for food and beverage?
Custom deals that drive trips and basket size would be like a super-secret, special-handshake arrangement for each shopper, based on their purchase history at the retailer, within the context of other data a retailer analyzes.
Get used to it, says The Lempert Report. This is how more retailers will model pricing soon, for several reasons, we believe:
The lack of pricing transparency on the selling floor is both good and bad for retailers. On one hand, it makes it harder for competitors to spy and change promotional tactics on the fly to try to blunt another operator’s campaign. On the other hand, people increasingly shop together or at least talk about their store trips; shoppers who hear about great prices but don’t qualify for them may resent the store.
As retailers refine their personalized pricing strategies, they’ll improve at managing thousands of relationships per store. This will include minimizing shopper pushback on deals they don’t get, and teaching shoppers what they need to do to earn the sharpest deals on items they want to take home. All the while, people will know that the store knows them and good things could happen as a result.