Implementing more targeted personalized pricing is not easy
Miami, FL (PRWEB) March 30, 2017
Retail Systems Research, LLC today released findings from its 2017 Benchmark Report, Retail Pricing 2017: The Dawn Of Personalized Pricing. The report, based on a survey of 105 retailers, found that the past 12 months have brought great progress for retailers’ pricing strategies. Much of the progress stems from the best performers’ experiments with personalized pricing and promotions, but these techniques are not for the faint of heart. The research is available for free download (registration required).
"Implementing more targeted personalized pricing, especially without losing the support of either consumers or employees, is not easy," reports Nikki Baird, managing partner at RSR Research and co-author of the report. "The reality is that retailers cannot jump into personalized offers with both feet. It must be a gradual evolution of increased targeting and relevancy over time.”
Key Findings of the research:
- The best retailers are experimenting with personalization to wean consumers off mass discounts
- However, to achieve positive results, retailers also must develop a strong understanding of consumer category affinities, and have capabilities to incentivize behavior changes that lead to consumers buying more across more categories – they still have much work to do
- The largest gaps between the best performers and their peers say it all: 68% of Retail Winners say their promotions are effective, vs. only 29% of average and under performers
Retail Pricing 2017: The Dawn Of Personalized Pricing contains analysis of the business drivers, opportunities, and organizational constraints surrounding retailers’ pricing practices. It also offers baseline recommendations for navigating this brave new world for retailers. The report is part of RSR Research's ongoing efforts to provide market intelligence on retail technology trends, is sponsored by IBM, and can be downloaded here:
An ebook (condensed) version of the report is also available.
About RSR Research: Retail Systems Research (“RSR”) is the only research company run by retailers for the retail industry. RSR provides insight into business and technology challenges facing the extended retail industry, and thought leadership and advice on navigating these challenges for specific companies and the industry at large. To learn more about RSR, visit http://www.rsrresearch.com.
RSR Research, LLC
Linda Wolfe, 774-284-4679