Overview
Marketers know that discounts are powerful, but not every customer requires one to take action. Some customers are willing to purchase at full price, while others are more motivated when a deal is available. The Price Sensitivity model helps predict how likely a contact is to respond to promotional emails that include price-based offers, and whether they are more or less influenced by discounts.
Rather than focusing on the size of the discount a contact redeems, the model segments based on behavioral patterns. It analyzes how contacts engage with discount-driven emails compared to non-discount emails, giving you a deeper understanding of their purchasing motivations.
For example, low-sensitivity contacts may redeem a $20 offer if it’s available, but the model recognizes that they’re also likely to purchase without a discount. High-sensitivity contacts, on the other hand, typically engage most when a discount is present. This insight empowers you to tailor messaging strategies more effectively and maximize campaign impact across different audience groups.
Price Sensitivity is available as an attribute in the Audience Builder and Contact Profile.
Contact your CSM to enable the Price Sensitivity model in your account.
Use cases
- Use Price Sensitivity to increase ROI by targeting promotions to customers who are more likely to respond to them.
- Protect your margins by suppressing unnecessary discounts for customers who will likely convert without one.
- Personalize your messaging based on what motivates different segments of your audience.
Prerequisites
- Email message, click, browse, and order data attributed to the email channel
- Subject line data for each message
- Contacts must have received at least one promotional email in the past 90 days
How Price Sensitivity is predicted
Cordial Edge factors in a customer's click, browse and order history to predict Price Sensitivity. This data is refreshed on a daily basis via a Data Job.
Available values
Cordial Edge places contacts into the following categories:
- High
- Medium
- Low
Build an audience with Price Sensitivity
1. Navigate to Contacts > Audiences and select New or edit an existing audience.
2. Under rules, type in Cordial AI or locate it under Attributes.
3. Click on Cordial AI Price Sensitivity or drag it into the Include Contacts section.
4. Enter the desired value—high, medium, or low—to load applicable contacts.
5. Click the Actions button and select Save.
View a contact's Price Sensitivity
1. To view Price Sensitivity for an individual contact, navigate to Contacts > Contact Profile and select the contact.
2. Click the Attributes tab and locate the Cordial AI Price Sensitivity attribute.
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