By applying data science and artificial intelligence, you can determine optimal prices and efficiently maximize your company's sales and profits.
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Optimal prices – with data science and artificial intelligence.
Your way to a data-driven organization
Pricing is a central success factor for many companies. Processes that involve manual analysis of market data and derivation of prices often cost a lot of time and resources. Using data and AI, companies can automate and optimize their pricing in terms of both sales and margin increases. In this approach, very large amounts of data can be processed by the underlying algorithms and thus be included in pricing.
The basis of any data-based price decision are so-called price elasticities. These reflect the relationship between price and demand and can be estimated from historical data using statistical or AI-based methods. Based on these parameters, price scenarios can be derived in which expected sales volumes or margins can be predicted. This enables companies to develop price or discount strategies that correspond to their business goals. Depending on the business model, it may make sense to vary prices over time (dynamic pricing) to respond appropriately to demand, inventory, competition, weather, or other factors. With the increase in e-commerce, more and more companies are trying to play out customer-specific prices, i.e., to align the price for a particular customer exactly with their willingness to pay. Methods from machine learning are also very suitable for these two price strategies, as they can process large amounts of data in real-time.
The development of data-based pricing systems is a core competence of our data scientists, which we have already successfully demonstrated in many projects. With our support, you can automate and optimize your pricing.
Use cases for
AI in pricing
Use AI for data-based optimization of your prices to maximize revenue or profit.
Determine the optimal level of discounts for specific products using data science and AI.
Automatically adjust your prices to various internal and external factors.
With AI, you can estimate the willingness to pay of individual customers and charge corresponding prices.
Focus your marketing activities on the customers where the intended effect is most likely.
Target your price strategies specifically to different customer groups and segments.
Understand the impact of price decisions on your business development.
With data science and AI, you can estimate how customer demand will react to price changes.
AI in pricing
Automated price definition
With data and artificial intelligence, companies can determine optimal prices for hundreds of products in seconds.
Data-based pricing strategies
Using algorithms, various external and internal factors can be included in pricing.
Increased sales and profit
An optimal pricing strategy helps companies maximize sales and profits in the long term.
Analyzing historical sales and price data provides interesting insights into the factors influencing product demand.