For the retailer
Unlike the B2B market, where customers generally benefit from individual prices or discounts, in the B2C market, in the vast majority of cases we refer to a single price for all customers. The price may depend on the quantity of the product purchased in special promotions such as buy 4 for PLN 10 or one for PLN 3, but these promotional conditions also usually remain uniform for all customers.
The main effort to optimise B2C prices therefore concerns designing a uniform price list and promotions available to all customers. In retail, perhaps even more important than in other market segments are the effects of the price image, and in particular the identification of price markers – the products that most strongly build the price image of the store.
Retailers have one important advantage, namely huge amounts of data from transactions with final recipients/consumers. This data allows for examining price flexibility, segmenting shopping baskets, identifying substitute and complementary (co-purchased) products.
Information about sensitivity, substitution and complementarity can be used to optimise the price list as a whole and not just to optimise the price of one or more products, taking into account cumulative effects such as, for example, the sale of one product may increase the likelihood of a visit to the store and the sale of other products, but at the same time may naturally replace the sale of other products in this category.
Thanks to Big Data technologies, the B2C segment is slowly reaching the next phase of the revolution, where we will more and more often have to deal with prices/discounts individually adjusted to the customer. More and more often, a B2C market player has access to previous data from the website visits, mobile application use or purchases registered on a loyalty card/application in a physical shop, which allows to prepare recommendations of the most suitable products for a given customer and offer them an individual attractive price, which will increase the likelihood of visiting the store. It is a minor challenge to provide information about an individual promotion to the customer, but today it is possible both after identifying the consumer’s visits to the website or through push notification in the mobile application.
We support retailers through:
- Audit and design of price management processes
- Segmentation of the customers and shopping baskets
- Identification of price markers, price flexibility and power of substitution/complementarity
- Effective presentation of prices and promotions
- Recommendation systems tailored to the individual customer