If customers are different, why shouldn’t they all pay different prices? The implementation of that idea is difficult when headlines highlight “surge” pricing or seemingly random price changes. You can turn dynamic pricing into a competitive advantage by following a few guidelines:

• Know your customers’ value perceptions: The more you know about each customer, the more you can adjust the price and the value of a product or service concurrently to match their needs.
• Craft a compelling story about fairness and value. Dynamic pricing won’t work if the only thing that customers notice is higher prices. When prices rise for some occasions and fall for others, it can create greater access to goods and services as well as better purchasing options.
• Implement the best tools and data. The more data and insights you have, the more you can experiment with dynamic pricing. But you need to resist the temptation to let data science and algorithms dictate your prices.

Success will depend on whether customers find something they can see, feel, or experience as a benefit. They need to see the practice as fair.