Cook Up Dynamic Pricing with Privacy Cookies

To increase your ecommerce customers’ acceptance of price hikes, persuade them to authorize your collection of information about them. They become more likely to retain trust in your business practices and continue to purchase from you. It works because, after agreeing to have you learn about their browsing habits, they’ll attribute more of the responsibility for a price increase to some characteristic of themselves rather than to any exploitive intent by you.
     This technique, based on research findings from HHL Leipzig Graduate School of Management, can be used in ways which are unethical. Don’t do that. But because consumers often fail to appreciate the justified basis for price increases, getting signoffs on privacy cookies can balance the seller-buyer relationship.
     The researchers point out that, for the effect to take hold, the agreement for information collection must be by the consumer’s affirmative choice, not from a default setting the consumer overlooks. Many jurisdictions are requiring disclosures about what data the retailer intends to collect, and then allowing opt-out. You’ll want to structure the agreement as an opt-in.
     When done properly, the technique also preserves perceptions of a fair policy when you drop item prices. These are examples of dynamic pricing, also called adaptive pricing, in which a marketer changes prices based upon anticipated demand from a customer or group of customers. The privacy cookie agreement is most useful for ecommerce vendors who change prices frequently.
     There’s still the challenge of persuading the ecommerce shopper to yield some of their privacy. Research findings from Quinnipiac University in Connecticut and Providence College in Rhode Island indicate that the practices often required by regulatory bodies help accomplish this: State to customers what information you’d like to gather about them, how you’ll be using the information to make their individual shopping experiences more efficient and fruitful, and how you will safeguard the security of that information.
     Benefits of shoppers sharing information with you which are likely to be attractive include: 

• Tailoring special offers for future purchases and gift suggestions based on what they have looked at 
• Giving advance information on new products and/or services so they could be among the first to have the item 
• Modifying the overall merchandise mix offered to them based on what’s discovered about them and others similar to them
• Preferential treatment, such as bonus loyalty program credits, expedited item delivery, or private customer service sites because of their willingness to share information

Successfully influence the most prosperous & most loyal consumer age group. For the specific strategies & tactics you need, click here.

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Get Price Hike Irritation Over With 

Ditch Deep Discounts via Adaptive Pricing 

Beware Dynamic Pricing 

Opt for Full Disclosure of Opt-Out Defaults 

Build Trust Before Asking for Information