Price personalization is essential for retailers trying to sell to ever-changing customers. But when done in the wrong way, customization can seem shady, misleading, or exploitative. A recent study illustrated how sometimes pricing approaches can hurt consumer confidence.
Via RetailWire, the Northeastern research found:
Conducted this spring, experiences on 16 popular retail and travel e-commerce sites were tracked by conducting searches on a personal laptop or smartphone while doing the identical queries at the exact same time from clean accounts devoid of cookies and search and purchase history.
- Of the 16, four general retailers and five travel sites showed some evidence of personalization, including cases where sites altered prices by hundreds of dollars.
- Cheaptickets and Orbitz offered reduced prices on hotels to “members.”
- Expedia and Hotels.com steered a subset of users toward more expensive hotels.
- Home Depot and Travelocity showed different prices for those searching on mobile devices versus desktop computers.
But, as noted, the problem isn’t retails necessarily driving customers to a more expensive cart – it’s transparency. We know customers are looking for a new experience in-store – and p[art of that resolves around the shopping experience being personalized. Successful retailers will integrate new pricing technologies in a way that make customers feel special, not slighted. How are your customers viewing your pricing policies?
Latest posts by Joe Shartzer (see all)
- Engaged Pricing Featured in Fortune - June 17, 2015
- Amazon’s “Make An Offer” Shows Customer, Data Reign Supreme - December 14, 2014
- 2014 Holiday Shopping Trends - December 7, 2014