What is intelligent pricing?

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.

How does AI help with price optimization?

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.

How do you create a pricing strategy?

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.

What industries use intelligent pricing?

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.

Solutions.AI for Pricing

Drive growth with intelligent pricing

“With their AI-powered pricing solution, Accenture has supported us to optimize and automate our pricing processes and models so we can create a better customer experience.”

— Massimo De donno, Deputy General Manager – Banca Sella

What we deliver

Personalized and dynamic pricing

Use real-time insights about individual customer preferences, market changes and competitor activity to optimize price and discounts.

Revenue growth management

Optimize list price, trade promotions, portfolio mix and price pack architecture.

Improved win probability & customer profitability

Enhance the probability of winning a deal and the optimal pricing that will maximize deal margin and customer profitability.

Far beyond pricing use cases in Consumer Goods and Retail, our solutions are pre-built for multiple industries including Communications & Media, Automotive, Industrial and Chemicals.

NEW CASE STUDY

Data-driven pricing at Banca Sella

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The AI impact

15%

Up to 15% increase in revenue

Up to 5% margin growth

40%

Up to 40% decrease in promotional spend

“We’re sprinting businesses into an era of pricing optimization with more scientific, systematic and personalized AI techniques including price sensing and dynamic simulation.”

— GEORGIOS PASSALIS, Accenture’s Global Solutions.AI for Pricing Lead