Unformatted text preview: idual customers. The result? Shipping revenues are up
this year by at least 10 percent, Adinew says. Ford Motor Co., meanwhile, also is reaping benefits. According to a
McKinsey study, Ford expects its digital pricing strategy to significantly improve the yield from the nearly $10 billion it
spends annually on promotional pricing.
Historically, discount financing and cash-back offers were broadly offered to every customer over a given period of time.
The Net, though, is enabling Ford to better track individual customer behavior, and let the company more finely target
tailored promotions to specific groups of people. "Differentiating price to target various groups is hard to do offline
because visitors to a physical store are a statistical mystery," says McKinsey's Zawada. Online, though, once a
customer's segment is identified, a segment-specific price or promotion can be offered immediately, online and off.
But it's not simply about cutting prices to move products. It's also about pricing your products to reflect their
different values to different customer gr...
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