Why segmentation is important and how to do it right
Are you familiar with the electronic price tags in supermarkets, for example at Albert Heijn? When Albert Heijn makes a price change, they do it in one place and by doing so the price is automatically adjusted in all their almost thousand branches throughout the country. Adjusting the price of a product in all your sales channels with the push of a button. That, and much more, is what a Pricing Engine of tritonX can do for your online outlets and physical stores. In this blog you will read exactly what the Pricing Engine can do for you.
The Pricing Engine: what can you do with it?
To get straight to the point: with the Pricing Engine you can let your customers benefit from the same advantages and price adjustments on all sales channels. Sending out time- and sale-based coupons (vouchers), discount schemes for specific customer groups, but also mix & match promotions like stacking discounts, are examples of features in the Pricing Engine.
An advantage of the Pricing Engine is that it allows you to specifically activate the customer, both offline and online, thus allowing customers to benefit optimally from an omnichannel experience. Often the Pricing Engine is also used in combination with all the functionalities of our Loyalty 3.0 package, as this can perfect the program just a bit. By the way, it is not necessarily necessary to do it combined, as Pricing Engine is also very valuable on its own. For example, it is very useful within segmented newsletters or automations.
How does the Pricing Engine work exactly?
The Pricing Engine consists of 4 different, optional modules. Each module has its own unique properties. The complete Pricing Engine consists of:
- The Personal Pricing (PPR) module
- The Coupon module
- The Mix & Match module
- The Discount codes module
Personal Pricing module
The Personal Pricing module does what the name implies: it creates personal prices. It is an optional module to automatically offer specific customers or customer groups a customized pricing policy. Price groups can be defined for example based on an article group, a specific brand or a sale item. Think of a 10% discount on the soccer collection for all members of the local soccer club Red-White. Or specific prices in combination with a loyalty status: all Goldmembers receive the pre-sale this weekend, before the sale starts. But also for example your own employees or those of companies you have made agreements with. The possibilities within the Personal Pricing module are endless and especially very personal. A customer will feel seen.
How do you make sure you keep surprising your customers? Or that you welcome a new customer back after a while, so that he becomes a regular customer? We have an extra tool for this: the Coupon module. Just set it up once in tritonX, and all the rest happens automatically. With the Coupon module you never forget anyone’s birthday. Or you can reward that one customer where something went wrong with a coupon. But you can also tempt your loyal customers with a little extra at the start of the season. For example: €7.50 discount with a minimum spend of €25.00.
The coupons can be issued to a registered customer in 4 different ways:
- Manually, for example by customer service.
- Automatically via a marketing trigger, for example for new customers or on a birthday.
- Via a campaign, in which case selected customers (segments) receive a coupon. For example, at an event or at the start of the sale.
- Via the API, issued by an external application. Such as a loyalty app or lead generation site. Think of a customer who can enter a code in the app and therefore receive a personalized coupon through tritonX.
Coupons can be used omnichannel, so the coupons can be used at every location where your store is active.
Mix & Match module
The Mix & Match module can be used at the checkout in the store, in the e-commerce environment and at other relevant touch points, in order to realize a 100% omnichannel experience. The Mix & Match module is then called upon to calculate prices valid for a specific combination of products. The POS (cash register) in the store calls this module after scanning the products. On the e-commerce environment, this is done from the shopping cart.
Examples within the Mix & Match module are: ‘get 3 pieces of brand A, pay 2’ or ‘with each additional product, 10% extra discount, rising to 30%’. You can mix and match with different brands or products!
Discount codes module (coming soon)
It is very common in e-commerce to work with discount codes. Think of a general code like BLACK2021 during Black-Friday promotions. But also unique codes provided from customer service or codes used for lead generation. Of course it is not really customer friendly if these codes cannot be used omnichannel. In practice, they are usually not verifiable on for example the cash registers in the physical stores. To solve this, but also to be able to manage all discounts from one central point (thus also in combination with coupons and personal pricing) we want to make the issuing and verification of discount codes available in tritonX. With this, the verification of the discount code in all touch points to the consumer – think of the webshop, the cash register in the physical store and – can be handled through tritonX. And this then works through the same interface together with Personal Pricing, Coupons and Mix & Match.
An important detail of the discount codes module, is that it is the only module within tritonX that also works for guest shoppers. So no code is linked to the customer account. However, the codes can be easily monitored via the tritonX dashboard. It is therefore possible to measure success!
You understand, besides adjusting prices in all your sales channels like with the electronic price tags of Albert Heijn, much more is possible within the Pricing Engine! Enough opportunities to reward the customers of retailers, to surprise them, but also in combination with Event Based Rewarding (about which we told you in our previous blog) very well suited to set up the perfect loyalty system and to bind your customers forever.