Procedure after sending the email
If the email recipient now clicks on one of the travel offers, the current price is transmitted from the knowledge base in real time. Since both the website and the email delivery system are connected to the knowledge base, the prices in the newsletter correspond to those on the website. The special thing about this is that the prices are not frozen so that they correspond to the status of the first opening each time. With each opening of the newsletter, they are played out anew via the knowledge base and thus always kept up to date. If an offer is fully booked in the meantime, the text “already booked” appears in the email. In this case, it would also be possible to use a fallback strategy that displays alternatives. In this way, dynamic prices have an efficient and recipient-friendly effect in the travel industry, so that TUI can delight its customers with constantly updated offers.
Dynamic prices in combination with personalisation
Furthermore, it would be possible to combine dynamic price display with personalisation. By displaying relevant recommendations and thus sending a personalised email with current prices. This would have the advantage that customers would receive individual offers for their favourite travel destinations and the price would be displayed on a daily basis when they open the email. A customer who has an affinity for Italy would receive offers with dynamic prices for Italy. This can additionally increase the click rate and thus the traffic in the online shop.
Personalisation in the context of dynamic pricing
Personalisation is about addressing customers individually and creating a positive customer experience. The display of dynamic prices can support this if they are calculated to the customer’s advantage.
Calculation of dynamic prices
Dynamic pricing uses an algorithm that calculates the appropriate price for the recipient based on a database. Artificial intelligence methods can be used here (machine learning), which constantly develop themselves further. In addition, company-specific rules can also influence the prices. Every company therefore has the possibility to influence dynamic pricing either negatively or positively. What should be noted, however, is that personalisation always has the overriding goal of optimising the customer experience and creating positive shopping experiences along the customer journey. Unfair pricing and personalisation therefore do not go hand in hand. If you want to learn more about calculating dynamic prices, you can take a look at the article by Stephan Lamprecht in e-tailment magazine.
Playout of dynamic prices
The personalisation software is responsible for playing out the dynamic prices, e.g. in combination with relevant product recommendations depending on the customer or in the B2B area depending on the purchase quantity. However, the calculation of the dynamic prices depends on the online shop itself; the personalisation software only accesses the prices that flow into the knowledge base about the product catalogue and plays them out in connection with personalised measures in the online shop.
Conclusion: Dynamic pricing can optimise the customer experience
Used correctly, dynamic pricing can be a blessing. Your customers won’t get any unpleasant surprises, but an excellent service. However, if you want to increase your profit at all costs, this can quickly have a negative impact on your image and your long-term success. Overall, it can be said that especially in industries with strong price fluctuations, such as the travel industry, there is potential in dynamic pricing, which should be used to create a better customer experience in e-commerce and increase KPIs at the same time.