Nothing is older than yesterday's price. Yet, the perfect price that is exactly matched to the corporate objective is derived from a plethora of factors. Dr. Michael Milnik explains why it is beneficial for organizations to calculate their prices in real time with predictive analytics software.
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If you're not sure if your prices are up-to-date, ask your customers. With a smartphone in hand, customers scan products on the supermarket shelves and get the lowest available price. It's a breeze for consumers to get an overview of the current market situation while sitting at home in front of their computers. The end-user is optimally equipped from a technical point of view - time to catch up. Speed in price adjustment is not rocket science, just data intensive. A robust software is necessary to handle this. If you want your pricing to be dynamic and to fit to your corporate objectives, you have to incorporate large masses of data from different sources in real-time.
A necessity in times of fast information processing: Dynamic pricing
Things start to fall into place: The online retailer can follow his customer's movements step-by-step on the website and then evaluate them.
- Is data on this customer already available?
- Has the customer bought something in the shop before?
- How many times did the customer abandon the cart before proceeding to checkout?
- How much do the items that were recently in the cart cost at the competition?
Predictive analytics software can recommend a 5 percent rebate off the entire purchase in real-time to the price conscious regular customer. Or at a popular Italian restaurant: The digital menu displays a higher price for the pasta with summer vegetables in the evenings and on weekends because the restaurant is fully booked. On Monday at 5 p.m., a special on filet mignon attracts customers with less money in their pockets. The supermarket on the corner reduces their prices for perishable fruits and vegetables, if an extremely hot weekend is approaching: Everything must go!
Fast and flexible like the end-user
If companies can keep up with the pace their customers have set, they can take over the lead (again). They maximize their margin and keep their customers satisfied. We've compiled all the information in a brochure about the software requirements needed to facilitate price calculation in real-time. Click here to download from the Blue Yonder website.