AI Solutions for Always-Optimized Operations

Pricing

September 10, 2021

Right product, right price

Every customer segment has a maximum price point for a given product or service. SparkBeyond Discovery helps organizations determine pricing elasticity by product, channel, customer segment and sales period, for competitive, contextually relevant pricing that adapts to market sensitivities. 

To help organizations identify the price threshold, optimize pricing and eliminate the least profitable discounts and segments, the Discovery platform combines complex internal datasets on brand, item, customer segment, location (specialist, impulse, seasonal stores), with external data such as competitor trends, social media trends, traffic, footfall/mobility, weather, demographics and economic/trade.  

Automatically scanning for ‘hidden’ patterns, SparkBeyond Discovery identifies emerging micro-segments and unexpected/loss-making production combinations and determines consumer response according to seasonality/location.  Using these insights, it generates highly accurate pricing recommendations according to item, brand, category and inventory.

The platform’s continuously updating pricing models forecast fluctuations, helping teams improve strategy by correlating deal size to discounts and predicting customer response to a bundling or pricing offer, e-mail campaign, or other call-to-action.  

Demand volatility equals complex pricing challenges.  Against this backdrop, Europe’s largest pure-play convenience chain wanted to optimize revenue per store, but its internal data was disparate (store, transaction, promotion, assortment, stock).  SparkBeyond augmented the store’s data with external sources including competitor stats, weather and zip code-level demographics and built a model to determine store-specific elastic pricing.  Outcomes:

  • Insights on price sensitivity across all product categories, adjusted per store.
  • €15 million of impact.

Smart marketers use AI-powered analytics to leverage data from millions of consumer interactions and shape a flexible pricing strategy that adapts to changing consumer lifestyles.

This article is part of our “Always-Optimized” series exploring how businesses can harness AI technologies to drive continuous improvement across operations and strategy.

About SparkBeyond

SparkBeyond delivers AI for Always-Optimized operations. Our Always-Optimized™ platform extends Generative AI's reasoning capabilities to KPI optimization, enabling enterprises to constantly monitor performance metrics and receive AI-powered recommendations that drive measurable improvements across operations.

The Always-Optimized™ platform combines battle-tested machine learning techniques for structured data analysis with Generative AI capabilities, refined over more than a decade of enterprise deployments. Our technology enables dynamic feature engineering, automatically discovering complex patterns across disparate data sources and connecting operational metrics with contextual factors to solve the hardest challenges in customer and manufacturing operations.

Since 2013, SparkBeyond has delivered over $1B in operational value for hundreds of Fortune 500 companies and partners with leading System Integrators to ensure seamless deployment across customer and manufacturing operations. Learn more at SparkBeyond.com or follow us on LinkedIn.

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