Retailers are under unprecedented pricing assault from aggressive online competitors, whether new entrants like Jet.com or established behemoths like Amazon.com. And shoppers have unprecedented access to pricing on any item, anywhere, across all channels, 24 hours a day.
But innovative thinkers have paved the way to demonstrating how to implement targeted price optimization to support dynamic pricing, whether for etailers, brick-and-mortar companies, or omni-channel.
In an Executive Viewpoints column in Retail TouchPoints, Girisha Chandraraj, Senior Vice President and Chief Digital Officer for Essendant and COO for Essendant division CPO Commerce LLC, joins Revionics Chief Science Officer Jeff Moore weigh in with pragmatic tips for the non-Amazons of the world to evaluate, select and successfully implement dynamic price optimization.
Girisha and Jeff keep the focus front and center on ROI to drive the business case. They argue for keeping in mind not just the importance of the technology, but also of the science, leveraging “self-tuning models and predictive analytics to future-proof your competitive edge.”
At the same time, they give due consideration to the people side of the equation, creating an environment that will support a positive culture shift to embrace and benefit optimally from dynamic pricing and price optimization. And while we’re on the people theme, they emphasize how critical usability is.
Embrace Pricing Agility
For any retailer still on the fence about whether to embrace pricing agility, they close with a powerful object lesson: “Done right, dynamic pricing gives you incredible insights into the economics of your business, in real time and at an extremely granular level, to transform your business agility and pack a powerful bottom-line punch.”
Recommended reading for starting off the New Year on a path to increased competitiveness!