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Dynamic pricing is the approach to pricing where prices are adjusted by variables such as location or inventory levels. By implementing dynamic pricing, we were able to charge different prices on product or delivery, as well as roll out personalised offers based on location.
This also enabled Krispy Kreme to incentivise particular customer groups and test different prices, using data to understand the elasticity of demand and impact on conversion rates.
We gave the shop the ability to adjust costs and show customers what is available based on their location, avoiding ‘not available’ disappointment.
