Price differentiation

A key element of every business, especially e-commerce and retail, is pricing. For what reason? Both customer acquisition and retention are impacted. One idea that has been popular recently is "price differentiation." This refers to the practice of charging various pricing to various customer segments according to their geography, demographics, and purchasing habits.By using differential pricing, you may increase your overall returns on investments (ROIs), target a larger audience, and engage them with offers and incentives. People from diverse socioeconomic backgrounds can test your goods since you set different costs for different customers.Pricing differential in retail and e-commerceKnowing your clients is essential for effective pricing differences. Retailers are better able to adjust their pricing strategies to fit the particular requirements and tastes of various client segments when they have a thorough understanding of their target market. In contrast to customers who buy the same goods in-store, a retailer might, for example, offer a lower price to online shoppers.