Dynamic Pricing – DI Platform Use Case

Say goodbye to tradition...

Today, customers not only have an almost inexhaustible access to products and delivery conveniences, with just a few clicks they can also compare which retailer or service provider offers the lowest price. Therefore, pricing is an increasingly important competitive tool for any online business. Manual pricing strategies, however, are neither fast nor efficient enough to respond to the dynamic retail landscape, often due to a limited set of performance data or because companies take too much confidence in their own gut feeling.

... wave hello to dynamic pricing

To truly become competitive, it is crucial for companies to acknowledge the power of decision intelligence as core capability for their pricing strategy. With dynamic pricing, they can automatically adjust their prices based on changing circumstances, allowing them to set prices within minutes instead of once per quarter, resulting in maximized monetization, reduced waste or a balanced supply and demand – just as Uber does, the long-time leader in leveraging automated price adjustments.

paretos Cockpit: Real-life example of the Connect View for Dynamic Pricing.

Benefits

Mastering dynamic pricing in an era, where e-commerce is rapidly evolving, holds a myriad of benefits over traditional pricing strategies.

Increased conversion rate and higher profit margin

Faster pricing response to market changes

Less manual work and more efficient planning processes

Improved customer experience and lower customer churn

Better inventory turnover, stock level adjustment and less stock-out

Higher repeat purchase and increased customer loyalty

SNOCKS

Higher margins through Dynamic Pricing

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Let us help you win

Curious how dynamic pricing will boost your business? Book a demo session and roll with us.

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Discover

Discover what impacts your conversion and margin

Every decision journey starts with an observation. Before you can decide which pricing models work best for your business, you need to understand which drivers impact the conversion and margins or any other relevant KPI of your business. Paretos shows you how each target affects your decision and which ones are most relevant in order to help you prioritize your actions.

Predict

Predict your top and bottom line before you make any action

To truly estimate the effects, your pricing actions will have on your revenues and profit, paretos will show you how different price ranges would develop in different scenarios. Our Predict View allows you to set your inputs according to your preferences and see how they would translate in future results. Additionally, we transparently show you the uncertainties associated with the prediction models to evaluate their individual risks.

Decide

Don’t sacrifice margin over faster customer growth

Standardized approaches to dynamic pricing focus on finding solutions that maximize conversions, but don’t allow for adjusting the margin. Simply because this linear regression completely disregards the variety of impact factors that play a role in finding the best achievable pricing strategy. With paretos, you’ll be able to analyze all possible pricing combinations and find your perfect fit to unlock hidden value. Other trade-offs that you should consider: Total order value and Net profit, Inventory turnover and Profit Margin, Inventory cost and Stock-out probability.

Execute

Automate your pricing decision

Once you have found the optimal trade-off between conversion and margin, or any other crucial target KPIs, paretos takes care of the rest. Confirm the desired outcome, review potential changes and execute your decision with only one click. From there on, our self-learning algorithm will continuously adjust the prices according to your set preferences.