How do companies customize prices with Artificial Intelligence?

Companies with the highest level of pricing maturity use artificial intelligence to ensure that their prices are always at optimal points.

One of the most used tools is algorithmic pricing (AP) capable of combining a wide variety of metrics to determine the price of each product/service. Our recommendation is to develop your own algorithm, ensuring that all important characteristics for the company are considered.

The algorithms used in algorithmic pricing are generally created by combining machine learning and other data analysis techniques in order to identify patterns and predict changes in the market. A great benefit is the ability to study large data sets, ensuring that all available information is used in favor of revenue and profitability.

Some of the most common PA applications are:

Personalized offers by customer cluster, considering preferences, purchase history, and geographic location.
Automatic price adjustment, considering changes in demand, inventory levels and competitors' pricing.
Inclusion of new attributes in the pricing method, such as opportunities on holidays, seasonality, among other factors;
Among many other applications.