The Pricing Model: Customization and Personalized Pricing 

Retailers are faced with several challenges when setting fixed prices on products for their customers. Over the past years, personalized pricing has been used to overcome such challenges. This form of pricing uses automation to target each individual customer with a price that better suits their specific buying threshold. The prime idea behind this is is that the closer the relationship between the retailer and customer, the better the price will be overall. This creates a means to personalize communications between sellers and buyers. Hence, allowing for a better market atmosphere. In Palestine, dynamic pricing is still the dominant form of pricing for retailers. There is a general lack of strengthening seller and buyer relationships and that needs to change.  

Therefore, Ahmed and Mohammad worked on a startup termed the “Pricing Model”, during their time in the Data Journey Program. They used de-identified data from large supermarkets in the West Bank and from a database online to create a platform. The model was centered around personalized pricing and inputting customization to enhance retailer and customer relationships. “Our model looks at all individual past transactions and the general revenue generated from the customer. Based on this it gives the customer a discount that is unique and personalized for them. We also added a part to the program where there is an extra input our clients can use if they want to give more a discount or less.”, explained Ahmed. 

As more of the world becomes digitalized it is crucial for retailers in the market to find ways to improve customer communications and this is what the pricing model aims to do.  By the use of machine learning and other data science-related techniques learned throughout the Data Science Journey, the “Pricing Model”, will be one of its kind in Palestine replacing dynamic pricing with personalized pricing.