Impact of granular pricing
Personalized pricing has the potential of doubling revenue over a single optimal price. At the same time adopting a pricing optimization model that optimizes price at an individual level has major risks. After all, how do you get customers to pay a different price for the same product without alienating them?
Granular pricing – Customer Acceptance
One of the key challenges in implementing optimized pricing at an individual level is retaining customer loyalty with differential pricing.
Some of the strategies that have proven successful in this area are