In this ever-changing dynamic world, organizations need to think fast and stay agile. They need strategies that work in the real world. Leading companies like Amazon, Uber, and Airbnb are continually crushing their competition and creating new benchmarks. Their secret sauce is to change prices continuously based on market demand and supply. Most organizations often fail to establish “price floors” or pricing boundaries and make quick pricing changes in the respective ERP systems or price registers. The key reason for the pricing process’s fluidity or dynamic nature , which most of them lack today.
Traditional pricing approach is mostly static in nature and not responsive to the dynamics of digital age. These pricing models had two strategies in common – “Premium Pricing” and “Penetration Pricing.” Profit maximization is not possible with both. At premium pricing, demand is still low. Even penetration pricing may have high demand, but the price remains low. Manual analysis with set business rules cannot adjust for unforeseen events. Organizations need new capabilities to deliver the constant availability, competitive prices, and instant buying experience that today’s consumers demand.
The digital world has illuminated the fact that customer experiences are shaped by other fluid and unpredictable factors such as customer’s expectations or mindset at the point of purchase. Hence, it is essential for organizations to activate the dynamic pricing lever. Dynamic pricing is a flexible pricing strategy where businesses can leverage AI to set flexible prices for products or services based on algorithms that take into account several factors such as Supply and Demand Competitor Pricing, Time-based pricing, Customer Profile and External factors in the market. Dynamic pricing has been proven to be very effective in improving the topline revenues by retaining the existing customers and also gaining new customers, thereby increasing market share.
MOURI Tech’s aiAURA Dynamic Pricing software adopts a pricing approach that leverages AI to set prices progressively based on algorithms that consider several factors such as Supply and Demand, Competitor Pricing, Customer Profile, and external market fluctuations. It can monitor prices, promotions, and stock of competitors daily and arrives at price recommendations integrated with enterprise systems such as SAP, Salesforce, etc. AURA Dynamic Pricing empowers product category managers, pricing managers, and sales managers with AI-based data-driven insights.
