How Dynamic Pricing Will Change Retailing Strategies for the Future
By Simon Cunnell
A dynamic pricing system is automated pricing based on how much a consumer is willing to pay at a specific time, with a price generated based upon pre-set business rules. It can be used to great effect in the services market where consumers looking to book services may be willing to pay more or less for a time slot, depending on convenience.
But for dynamic pricing to really work, the convenience must work both ways — businesses can charge booking slots depending on how far away their vans/technicians are, the tools/products available, and the time of day.
Dynamic pricing is set to become one of the core capabilities that will put businesses ahead of the rest in the retail landscape of the future. The reason being is that it offers convenience — something consumers are willing to pay for. The difference with dynamic pricing is that it also allows organizations to balance both convenience and profitability — they can offer increased convenience while offsetting the costs through dynamically priced booking slots.
Deliver More From the Same Resources
The global pandemic accelerated customer expectations and now many of them now look for more efficient delivery and personalized customer service. Here, dynamic pricing can help. With effective service delivery now hit by reduced workforces and driver shortages, mobile service software and dynamic pricing can help organizations look to innovative ways to combat these impeding factors from both a resource utilization and profitability perspective. Organizations should look to do more with who and what they have, instead of fronting the operational costs of buying more vans or employing extra staff.
Booking Service Time Slots Dynamically
Dynamic pricing alongside other mobile functionalities can deliver more, with the same resources. For the retail industry, booking slots can be priced according to van distance and availability, and it will enable better management of where technicians are sent and at what time. This is done through route density, which relies on dynamic scheduling — a tool that ensures drivers or technicians are sent on the most efficient and cost-effective route for every job.
From a business perspective, it’s all about maximizing utilization and this, in turn, will increase efficiency and generate additional revenue.
Add Dynamic Pricing to Your Dynamic Routing and Mobile Field Solutions
Dynamic pricing shouldn’t be considered a replacement for any other systems or software but rather an additional strategy for convenience, service, and a way to optimize business operations. Organizations can overlay dynamic pricing on top of pre-existing dynamic routing and scheduling tools. Then, it will influence when the customer books to maximize jobs on the already dynamically planned routes ensuring maximum route density (jobs per route) and profitability. This is where a solution capable of integrating dynamic pricing on top of mobile field solutions will be crucial to offer true visibility for both customers and service technicians.
This is where the potential for added extras comes in — with dynamic pricing overlayed at the consumer booking stage, retailers and home servicing organizations have the opportunity to intuitively recommend and offer additional products and services, also at this stage, at no extra cost.
Targeted Solutions With the Right Software
In such a competitive market, meeting consumer preferences can be challenging and for many businesses, a more convenient option for their customers might be just around the corner. By choosing the right software, retailers can take mobile operations to a whole new level with a strong consumer base.
Dunnhumby recently released a special edition of its Retailer Preference Index, a nationwide study of the $1 trillion U.S. grocery market, examining which grocers are winning customers despite the ongoing inflation crisis. View the rankings here.