Rather than individual pricing, personalised discounting based on behaviour
2 June, 2010 at 10:09 am Tim Roberts ARTS Australia Leave a comment
An interesting innovation reported in the New York Times 
Sam’s Club Personalizes Discounts for Buyers
Rather than discount coupons, Sam’s (part of Wal-Mart) eValues is offering direct discounts to club members “ … coupons normally had a response rate of 1 percent or 2 percent. With eValues … as many as 20 percent to 30 percent of eligible customers collect the discount they are offered.“
“There’s no clipping coupons,” eValues offers “highly individual relevant offers specific to each Plus member. All they have to do is purchase the product, and the savings are automatically applied at checkout.”
The program targets discounts based on previous purchase behaviour with ”predictive analytics, which uses vast amounts of data to spot trends and anticipate consumer behavior.“
“If you get more relevant to shoppers, you get more loyalty, you get more business,”
“Sam’s Club can vary the message and price in the communication received by the customer … Aside from the cost savings, tailored messages to consumers can also highlight specific product attributes that a particular consumer typically seeks, like “organic” or “environmentally friendly,”“
Entry filed under: Case Studies, Dynamic Pricing, Loyalty. Tags: Discounts, Dynamic Pricing, predictive analysis, price.
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