AI Based Price Optimization

AI-Based Price Optimization

Price optimization is the use of mathematical analysis by a company to determine how customers will respond to different prices for their products and services through different channels. It is also used to determine the prices that the company determines which will best meet its objectives such as maximizing operating profit.

Critical Industrial Challenges

Are you facing customer churn & losing revenues?

According to PwC, for 60% of consumers, price is the number one reason they buy anything. Prices that are higher than the typical market rates will only lead to loss of business and churn in the existing client accounts.

Is your competitor constantly stealing your customers?

If customers find a better deal at your competitors' site or store, it’s no brainer that they will bite for the better deal. The double whammy is when retailers price their product high, they also lose every chance of making more business with cross-selling and upselling while the competitors get a chance to forever retain your valuable client.

Are you always wrestling to maximize your profit margins?

Retailers need to ensure they can aptly price any of their offerings and experiences even with changing demand, market trends and seasonal patterns. It is a herculean task for retailers to determine which products to price at what point when they have millions of products and services to offer. Hence, a misleading price will only damage business & its growth KPIs instead of fueling them.

Does your product price mislead your customers?

The retail brand takes an overall hit for all future businesses in the absence of crystal clear competitive pricing to customers. In the absence of transparent & honest pricing, customers perceive being misled or even sometimes cheated which causes a huge impact on the overall brand and customer return rate.

AI-Based Product Pricing & Optimization Engine

Synctactic.AI price analytics engine allows retailers to set optimized pricing for the entire portfolio of their product, offering and services by using all the existing transactional data related to product features & benefits, their lost sales, churn rate, sales patterns, and competitive product price and its positioning.

Benefits with AI-Based Price Optimization Engine

01.

Control your Profit margins

If we price too high, we might increase the profits but it always leads to a decrease in the number of transactions hence loss of revenues. On the other hand, keeping profit margin too low will cause more damage to the operational efficiency of the company by making the supply chain and delivery people work more to earn the same revenues. A reliable and accurate price optimization engine can strike a perfect balance between the two extremes.

02.

Increase in Business growth

A reliable and accurate price optimization discovery and automation can have your retail business in India, retail business in the US or any part of the world at a skyrocketing growth. This kind of pricing power just can’t be ignored.

03.

Competitive Pricing to control fluctuating revenues

Businesses often notice surprise dips and change in their revenues. Such a sudden drop in sales of your product or services or lesser conversion rates are likely caused when your competitors can offer the same product or service at a better and competitive price. With a reliable price optimization and recommendation engine in place, one can constantly keep track of close competitors pricing to ensure such surprise fluctuations are minimized.

04.

Accurate Listing, Discounted & Promotional Prices to Increase Sales Volume

The listing price is important because that’s one of the most critical decision making anchors for your customers. Listing price enables retailers to understand the base demand for your product & offerings. Deciding on listing price or trying to come up with a promotional price to increase your sales is critical to any retailers. Price optimization engines are extremely reliable to recommend baseline prices, listing prices, discounted prices and promotional prices.

Syntactic AI-Based Price Optimization

Synctactic.AI retail analytics tools are retailers AI-based Data-driven hyper-growth AI engine to predict at what selling price an individual client is positively going to take the offering and not to just add in their cart but make an immediate payment with successful checkout.

Product elasticity and its cross-elasticity with competitive products

Syntactic.AI Data engineering tools are goal-driven to optimize the key business KPI in terms of volume of the sales, unit sales profit while factoring both the elasticity of the product and its cross-elasticity with competitive products.

Data-centric and Model-driven Price Optimization

SyntacticAI has been providing an accurate price recommendation engine by taking all the existing data-centric and model-driven approaches inbuilt into their patent-pending tools like Sync discover, Sync learn, Sync data, Sync analyze which has been factored for Market Based Pricing, Customers behaviors towards pricing, Customers sensitivity for various pricing.

Competitive pricing & Discounted pricing

Fault Classification

SyntacticAI data automation & data engineering tools mine through various data resources from Markets, inside transactional data and Competitor data to bring the best price optimization points which factor Pricing elasticity, Competitive pricing, Discounted pricing for bulk orders.

Behavioral based Price Optimization

SyntacticAI Dynamic Pricing optimization capability contextualizes the price of the offering based on customer past behavioral and shopping patterns. This pricing optimization approach directly enhances the existing pricing strategies to deliver promised Return on investment in a quarter on the AI-based Price Optimisation and Price recommendation engine.

To immediately leverage this power of AI on your existing data and system please connect with one of the data scientist members of the Syntactic.AI team.

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