Pricing has long been a top strategic priority for the C-suite. But today’s unpredictable market conditions have forced leaders to approach it differently. 73% say that AI will be key to their future success as they embrace new pricing models and look for innovative ways to price for growth.
Solutions.AI for Pricing supports ongoing price optimization and helps structure new commercial models that can increase profit and prevent leakage. It uses AI and advanced ML to deliver real-time insights based on market signals, competitive intelligence, and changes in customer preferences and buying propensities. Using these insights, companies can create and launch the most effective pricing scenarios – and customer experiences – to drive growth.
Intelligent pricing is a strategic pricing approach that determines a customer’s willingness to pay for a product or service based on a myriad of data points such as time of day, location, real-time demand for a product and purchase history. Organizations can use AI (artificial intelligence) and ML (machine learning) on the data to both recommend the optimal price and continuously optimize and suggest better pricing scenarios using new customer and market data.
AI (artificial intelligence) and ML (machine learning) deliver real-time insights based on market signals, competitive intelligence and changes in customer preferences and buying propensities to optimize price. Using these insights, companies can create and launch the most effective, personalized pricing scenario and customer experience for its customers.
An effective pricing strategy or model helps organizations find the optimal price for a product or service based on consumer and market demand. While not easy, pricing strategists need to consider the following: defining a goal with C-level buy in; understanding the value the offering brings to the customers and how it will drive loyalty; aligning the customers’ behavior against price models such as subscription, pay-per-use, freemium, or a combination; building a technology, analytics and data foundation; testing, learning and adapting prices; and making sure to hire or develop the right talent.
Intelligent pricing strategies and capabilities are used across a wide variety of industries from banking and automotive to consumer packaged goods (CPG) and retail. In the retail industry, intelligent pricing can be used to determine the optimal price and strategy to maximize profit. AI can analyze vast amounts of data (i.e. customer, location, competitor data) and suggest how to optimize products and promotional tactics both in store and online to drive customer loyalty and business revenue. For automotive companies working with spare parts, intelligent pricing can offer customers the best price while also maximizing profit for the business.