- Research Feature
- Read Time: 16 min
Should you offer your best prices to new customers or existing ones?
Recent research suggests that the answer depends on customers’ shopping flexibility and the degree to which customers’ value varies.
When consumer preferences are highly fluid and the highest-value customers are much more valuable than others, then companies should reward their best existing customers. But if either of those characteristics is not in place, companies should offer their best prices to new customers.