Price Personalization
Price personalization, also known as dynamic pricing or personalized pricing, is a strategy where businesses adjust the price of their products or services based on various factors related to the individual customer. This practice leverages data and algorithms to determine the highest price a particular customer is willing to pay, aiming to maximize profits and cater to the specific needs and behaviors of different customer segments.
Algorithm and Model Development
Machine learning models analyze customer data to predict buying behavior and determine the optimal price point for each segment or individual.
Continuous Optimization
The system continually learns and adapts based on new data, refining the pricing strategy to improve accuracy and effectiveness over time.
Segmentation and Profiling
Customers are segmented based on collected data. Profiles are created to group customers with similar characteristics and behaviors.