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Personalized Products

Dynamic pricing is already present in several product & service markets (its even part of a course offered at IIM Calcutta). It just means that you may be charged a different price for the same product depending on when, where and how you buy it and what your previous relationship with the brand is (like an airline seat). Of course, this allows the companies to charge a different price for different customers and exploit their willingness to pay in a more thorough fashion.

Dynamic advertising (real-time advertising/marketing) is also gaining increasing focus with the rising amount of time people are spending using mobile apps and social media, both of which gobble up all possible data about you that you dangle in front of it (sometimes it steals from your pocket, without you noticing, as well). All this data that is gathered about you helps brands build a profile about you that can be used to better target advertisements at you. Search for something in Google and see the relevance of the ads that turn up.

Both of these have lead to personalised advertising and personalised pricing. You can read how personalised pricing can turn all product prices into something similar to stock prices here.

All this is so last couple of years, though. 

So why just stop at personalised pricing and advertising?

I think brands should incorporate all this data they have about their customers (and potential customers) and make use of it to deliver personalised products and services rather than just focusing on wringing that extra dollar out of the customers.

Imagine buying a new phone with all your favourite apps already installed. Or buying a sim card that already has a plan for data usage and roaming based on your previous history. Of course, there can always be the option to buy a generic product. But I see great potential in all the data available about customers to personalize the products they buy.

What do you think?

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