Three months after 100% Pure’s Ric Kostick hired San Francisco startup Freshplum to help him target which online customers might need steeper incentives to buy a product, online revenue increased 13.53 percent, Forbes reports. Freshplum uses an algorithm to determine which customers to target with greater discounts—using such data as whether the user is in a city or the outskirts or whether they’re a repeat customer—with greater than 99-percent accuracy, according to the company. Harvard Business School Prof. John Gourville said advances in technology and Big Data collection are making differential pricing increasingly easy. “However,” he said, “very quickly you start eliciting complaints about fairness.”
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