Priceline.com is one of the pioneers of the internet. Well-known for the
‘name your
price’ Web offering, Priceline.com turned to Linescale for help
in responding to
a decline in customer satisfaction that was threatening their
core business.
Taking Priceline.com at their word, customers were first testing
the system by making
a “fantasy”,
or unrealistically low offer. The airlines’ rules do not permit a
second
offer since that would allow unacceptable probing of prices.
Linescale identified
the problem through its diagnostic capabilities and worked
through a development
process with Priceline.com to create the best solution. When
fantasy offers were
proposed Priceline.com now identified them as fantasy offers and
then informed the
customer that while it was willing to submit their offer, the
chances of it being
accepted would be extremely low. Priceline.com then recommended a
higher price range
to the customer. Because the system now demonstrated that it was
intelligent and
recognized their offer, customers were reassured and submitted
valid offers. With
this important feedback mechanism instituted into the Web
experience valid or “in
range” bids rose driving a dramatic increase in both customer
satisfaction and revenue.