Targeting Variables

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).