It's one thing to point out that you have a pricing problem. It's another thing for marketers to leverage the information and generate positive ROI from the data.
In pricing projects I develop what I call "targeting variables". The variables are stored in your database, and are available for use at any time.
- Low / Medium / High Price Point Preference.
- Purchases Items Above / Below Normal Price Point For The Individual Item.
- Buys Winners or Contending Items.
- Primary Merchandise Category Preference and Secondary Merchandise Category Preference.
- Primary Marketing Channel Preference and Secondary Merchandise Category Preference.
Now, let's say that you are L.L. Bean and your merchants want to clear out a Sweater Fleece Coat. As a marketer, how can you help?
- Identify customers with a primary or secondary marketing channel = email marketing.
- Identify customers who purchase from medium / high price points.
- Identify customers who purchase items that sell below their typical average selling price for an individual item.
- Identify customers with a primary or secondary merchandise category = womens coats.
- Send this segment of the database an email campaign featuring the Sweater Fleece Coat.
Just like that you've make pricing data actionable via targeting variables!
Hillstrom's Pricing = $8,500 through December 31 (click here).