Target is one of the major brands effectively using dynamic pricing: a user is targeted with a higher price point, then retargeted with a discounted price. As more retailers are pressured by the giant, Amazon, this has become an alternative to give the impression of a lower price. Uses are various, such as targeting frequent customers with exclusive discounted offers to retain their loyalty, or based on the user’s location to drive in-store traffic.
While this may initially be a smart idea, this can also backfire once the customer finds out that prices can change based on their information. Target has used this to their advantage to promote their app, Cartwheel, to let users scan the barcode and if they find a lower price, it would automatically be discounted at checkout.
One thing we can learn through Target’s case study is how they have included the app in this – shoppers want a low price, and they can find it on the app. For Jack, it’s not so much about the price point, but how we can make the consumer journey personal to each customer. Jack is utilizing dynamic creative to speak to different audiences based on their language preference, habit, etc. How can we simultaneously promote our loyalty programs naturally through targeting?
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