7 Reasons Every Retail Company Needs an Automated AI Pricing Solution!
Gone are the days of manual number-crunching, outdated competitive pricing, and slow-paced price-optimizing activities. With the help of AI, retailers can now eliminate these tedious tasks and get 99% accurate information in less than half the time.
Data suggests, that the global Artificial Intelligence in retail size was valued at USD 4.84 billion in 2021 and is projected to grow to USD 51.94 billion by 2029. This means retail brands who are still using old-school methods of creating pricing strategies need to up their game and join the bandwagon of AI-savvy retailers who are using robust pricing methods to optimize prices, maximize revenue and build customer loyalty.
To get a better understanding of the perks of using AI for pricing let’s look at the top 7 reasons why every retail company needs an automated AI pricing solution!
#1 Track Competitor Pricing in Real Time
Business Insider says, that the e-commerce giant, Amazon changes the prices of its products an average of 2.5 million times per day. And that is just one e-commerce platform. Retailers often place their products on multiple digital shelves, which means they have to track their competitors’ prices on each platform separately.
An AI solution makes this process much easier and allows retailers to scan multiple platforms in one go. These scientifically programmed bots analyze the data and produce accurate results at a high speed, thus allowing retailers to optimize their prices at the right time and the right frequency.
#2 Deep Data Insights into the Latest Retail Trends at Lightening Speed
Accurate insights into the latest retail trends help spike sales. With the help of historical data, companies can study the data and understand the types of colors, patterns, and styles that brought in maximum sales. Based on this analysis they can optimize their product listings and showcase the right products on their digital shelves. These insights can be easily accessed with the help of AI pricing solutions that store, tons and tons of consumer data which can be studied to the T.
BRIO, Sciative’s pricing solution for the retail industry follows an intensive 3-step approach that starts with descriptive analysis, where are the information is gathered and described to the user, then comes the next step i.e. predictive analysis, where the automation bot predicts the right price for tons of products and finally, comes the third step which is prescriptive analysis. After describing the data and predicting real time price changes, BRIO provides a prescribed pricing solution that help that gives deep insights for decision making.
#3 Revenue Maximization
Reducing prices to improve sales is one of the biggest pricing myths. In order to increase revenue, retailers must know exactly when to increase or reduce their prices, what time of the day, and which day of the month. Apart from this they also need to perform high-speed processing of all this data. All of this can be performed by a human but it will take hours and hours to analyze one single product, something AI can do within seconds.
Machine learning scrutinizes market movement, performs real-time market pulse tracking, and monitors trends and changes in customer behavior after which it suggests the perfect price for a product. Here’s how our AI-powered retail-solution BRIO enabled an arts and crafts company in the USA to maximize its revenue by identifying its NPA inventory and improving online product listing.
#4 Scientifically Derived Customer Behavior Data
According to RSR Research, pricing optimization tools are being used by 44% of retailers. Human-engineered pricing moves based on manual analysis, and intuition, may not always produce optimum results. In today’s fast-paced retail sector, business owners require a scientifically backed algorithm that makes a product more customer-centric and optimizes them for digital shelves. This can only happen if the prices are changed based on the consumer’s needs. AI customizes the pricing of a product after analyzing up to 150 factors, including customer behavior, product listing, and market movements.
This is why it is essential to get an AI-powered pricing solution for your retail brand.
#5 Achieve 10XSpeed
Retailers today have to keep up with hyper-aware customers who perform deeply insightful research about every product purchase. From performing multi-shelf price comparisons to finding the best sales discount, they can do it all and sometimes faster than most retailers. This means every brand has to be 10 steps ahead of its customers.
An AI-powered pricing solution enables companies to quickly analyze customer behavior, prompt accurate price corrections, and fill in the pricing gaps with a click of a button. Thanks to AI, retailers can bid adieu to age-old pricing methods and step into a world of lightning-fast pricing progression. Instead of taking hours using unscientific methods to decide a price, retailers can rely on AI algorithms to do it for them.
Companies ideally have hundreds, sometimes thousands of SKUs that have to be identified, mapped, tracked, analyzed and priced. And this can take hours and sometimes days, not to mention the cost of manual labor, margins of error, and the efforts required to manage a team of pricing analysts. But with AI all of this can be resolved in no time.
A robust pricing solution can identify, map, track, analyze and price thousands of transactions in one single go. It understands the behavior of price-conscious customers and prompts accurate pricing strategies for multiple products across various digital shelves.
AI-powered pricing solutions enable entrepreneurs to automate their pricing plans while they can focus on scaling their businesses. Keeping this in mind the team of full-stack developers and data engineers designed a pricing solution, especially for retailers. BRIO performs 100,000 price optimizations daily and enables retailers to improve their sales, by filling in the pricing gaps.
#7 >99% Accuracy
It goes without saying that a human cannot match the accuracy rate of a machine. Automated pricing solutions enable retailers to activate automated dynamic pricing, perform real-time pricing analysis, and catapult revenue growth with 99% accuracy. The algorithm can predict competition and customer reactions to your pricing actions in advance, enabling you to roll out accurate pricing that boosts growth and loyalty. It dives deep into consumer behavior, retail trends and
Apart from setting revenue-maximizing pricing tactics, the SaaS product offers data intelligence, analysis of customer sentiments, and robust, intuitive and interactive, dashboards that project numbers in a simple yet effective manner. Retailers no longer have to ‘GUESS’ the price of their product based on their intuition and manual analysis. All they have to do is feed in their strategies and the algorithm will optimize the price accordingly.
AI-powered pricing solutions are the future! They not only help retailers plug revenue leaks but also maximize revenue by informing them exactly when, where and how they should change the prices for maximum optimization.
So if you are a retailer who wishes to get on board with an AI-powered pricing solution then book a free demo with us or email our pricing consultants at email@example.com.