Each year, InternetRetailing starts to look ahead to the coming new year in a series of predictions. John Moss, CEO of Flintfox, explains that retailers are navigating a difficult trading environment, shaped by economic volatility, shifting consumer expectations, and technological advancements.
One of the most critical areas for innovation and how businesses can gain a competitive edge is pricing strategy. Gone are the days when static and manual pricing models were sufficient. Today’s retailers need to embrace more advanced pricing strategies to achieve their potential and maintain profitability.
The rise of sophisticated pricing strategies
A continuous dynamic marketplace no doubt requires a dynamic approach to pricing – which explains why Oxford University Press has just shortlisted ‘dynamic pricing’ as its Word of the Year. As digital commerce continues to expand, businesses are abandoning one-size-its-all pricing approaches.
We’ll continue to see more trials of pricing technology that capture more of the customers’ willingness-to-pay. This includes strategies that use surge and dynamic pricing, and while there has been bad press in the context of concert tickets recently, this has been used for years in travel and hospitality. Businesses always need to capture as much value as possible and maximise margins, so will look to offer products or services at a dynamic (higher) price that consumers are still willing to pay.
While dynamic pricing might not be suitable for all businesses, products, and shoppers, the ability to manage pricing dynamically will become a universal requirement. Automation will play a pivotal role in this evolution, enabling businesses to respond to market shifts in real time. Whether it’s adjusting for demand fluctuations or tailoring offers to individual customers, having the ability to manage pricing dynamically ensures pricing remains agile and transparent.
Using personalisation to drive customer loyalty
Inflation and ongoing cost-of-living pressures are reshaping consumer expectations. Customers now seek pricing that reflects their loyalty, purchase history, and even demographic preferences. This shift goes beyond discounts – it’s about creating personalised, customer-centric pricing strategies that foster deeper connections and build trust.
In 2025, businesses that invest in personalisation will see significant returns. Tailored offers can drive loyalty, increase purchases, enhance customer lifetime value, and solidify brand reputation, especially in competitive markets. By making customers feel seen and valued, companies can increase their share of the consumer’s wallet, and position themselves as partners rather than just providers.
Agility and real-time responsiveness to become paramount
In a fast-changing world, pricing agility will define business success in 2025. Businesses must be able to respond instantly to cost fluctuations, demand spikes, and competitive pressures.
This shift isn’t limited to one industry. Manufacturers need real-time tools to manage raw material costs, while distributors must adapt pricing across regions and channels. This of course will impact the retailers in the supply chain and these companies will need to be able to respond by adjusting their own prices accordingly. Businesses that can combine precision, speed, and scale will not only survive, but thrive in the face of uncertainty.
Alongside making the investment in data-driven pricing, businesses will need to focus on educating the different functions of its strategic importance. The future isn’t going to be about just implementing strategies, but about building ecosystems that foster speed, accuracy, and consumer trust.
John Moss, CEO of Flintfox
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PREDICTIONS Why pricing will need to be prioritised in 2025
Katie Searles
Each year, InternetRetailing starts to look ahead to the coming new year in a series of predictions. John Moss, CEO of Flintfox, explains that retailers are navigating a difficult trading environment, shaped by economic volatility, shifting consumer expectations, and technological advancements.
One of the most critical areas for innovation and how businesses can gain a competitive edge is pricing strategy. Gone are the days when static and manual pricing models were sufficient. Today’s retailers need to embrace more advanced pricing strategies to achieve their potential and maintain profitability.
The rise of sophisticated pricing strategies
A continuous dynamic marketplace no doubt requires a dynamic approach to pricing – which explains why Oxford University Press has just shortlisted ‘dynamic pricing’ as its Word of the Year. As digital commerce continues to expand, businesses are abandoning one-size-its-all pricing approaches.
We’ll continue to see more trials of pricing technology that capture more of the customers’ willingness-to-pay. This includes strategies that use surge and dynamic pricing, and while there has been bad press in the context of concert tickets recently, this has been used for years in travel and hospitality. Businesses always need to capture as much value as possible and maximise margins, so will look to offer products or services at a dynamic (higher) price that consumers are still willing to pay.
While dynamic pricing might not be suitable for all businesses, products, and shoppers, the ability to manage pricing dynamically will become a universal requirement. Automation will play a pivotal role in this evolution, enabling businesses to respond to market shifts in real time. Whether it’s adjusting for demand fluctuations or tailoring offers to individual customers, having the ability to manage pricing dynamically ensures pricing remains agile and transparent.
Using personalisation to drive customer loyalty
Inflation and ongoing cost-of-living pressures are reshaping consumer expectations. Customers now seek pricing that reflects their loyalty, purchase history, and even demographic preferences. This shift goes beyond discounts – it’s about creating personalised, customer-centric pricing strategies that foster deeper connections and build trust.
In 2025, businesses that invest in personalisation will see significant returns. Tailored offers can drive loyalty, increase purchases, enhance customer lifetime value, and solidify brand reputation, especially in competitive markets. By making customers feel seen and valued, companies can increase their share of the consumer’s wallet, and position themselves as partners rather than just providers.
Agility and real-time responsiveness to become paramount
In a fast-changing world, pricing agility will define business success in 2025. Businesses must be able to respond instantly to cost fluctuations, demand spikes, and competitive pressures.
This shift isn’t limited to one industry. Manufacturers need real-time tools to manage raw material costs, while distributors must adapt pricing across regions and channels. This of course will impact the retailers in the supply chain and these companies will need to be able to respond by adjusting their own prices accordingly. Businesses that can combine precision, speed, and scale will not only survive, but thrive in the face of uncertainty.
Alongside making the investment in data-driven pricing, businesses will need to focus on educating the different functions of its strategic importance. The future isn’t going to be about just implementing strategies, but about building ecosystems that foster speed, accuracy, and consumer trust.
John Moss, CEO of Flintfox
Stay informed
Our editor carefully curates two newsletters a week filled with up-to-date news, analysis and research, click here to subscribe to the FREE newsletter sent straight to your inbox and why not follow us on LinkedIn to receive the latest updates on our research and analysis.
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