Companies with the highest level of maturity in pricing use artificial intelligence to ensure that their prices are always at optimum points.
One of the most widely used tools is algorithmic pricing (AP), which is able to combine a wide variety of metrics to determine the price of each product/service. Our recommendation is to develop your own algorithm, ensuring that all the characteristics that are important to your company are taken into account.
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 major benefit is the possibility of studying 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, taking into account preferences, purchase history and geographical location.
- Automatic price adjustment, taking into account changes in demand, stock levels and competitor pricing.
- Inclusion of new attributes in the pricing method, such as holiday opportunities, seasonality, among other factors;
- Among many other applications.
