How to implement an Omnichannel Pricing Strategy with AI
03/08/2023 - Artificial Intelligence
An omnichannel sales strategy makes it possible for consumers to purchase through different sales channels, for example, a brick-and-mortar store, online store, app, etc. Together they are designed to deliver customers the best possible shopping experience, regardless of the sales channel they choose. An omnichannel pricing strategy ensures prices are consistent, effective, and competitive. This does not necessarily mean prices will be the same across all channels. However, it does mean that prices must adapt to the needs of each channel and users’ behaviour. From Reactev, we explain how to implement an artificial intelligence-assisted omnichannel pricing strategy.
Benefits of an omnichannel pricing strategy
An overall omnichannel pricing strategy allows you to have a global view of eCommerce prices across all sales channels. It also makes it possible to achieve consistent prices that fulfil users’ expectations and align with the brand image the company seeks to portray. This will also help increase consumer confidence in your eCommerce and can trigger increased sales.
Having an omnichannel pricing strategy can help you better control your stock requirements and predict more accurately changes in demand. You will have an overall perspective of users’ behaviour when faced with prices across the different sales channels.
The biggest challenge lies in figuring out how to identify the optimal prices for each sales channel. You also need to be able to constantly adapt prices to changes in supply and demand, whilst ensuring they remain competitive. The answer is simple — with the help of artificial intelligence software.
Optimize prices with Artificial Intelligence and machine learning
The experience of companies large and small has proved beyond doubt that setting omnichannel prices by hand is neither agile nor efficient. There are countless internal and external variables to consider. Analysing all these variables is complex and requires a considerable investment in human resources and time. On the other hand, with pricing tools armed with artificial intelligence, it is possible to achieve competitive prices that fulfil eCommerce objectives.
Today’s pricing software processes and considers key factors for pricing, such as:
- Costs of each sales channel, product manufacturing costs and transaction costs.
- Minimum expected profit from the sale of each item.
- Demand level on each sales channel.
- User behaviour.
- Pricing and what competitors are doing.
- Socio-economic climate and other external variables that may affect prices.
Once you have decided on the key KPIs the pricing tool should use, it can suggest the optimal prices for each sales channel, ensuring these are consistent with each other, and the eCommerce brand image. The most advanced tools, such as Reactev, have an artificial intelligence engine built on technologies such as machine learning, to process millions of data from the past and present. From this data, the tool can identify correlations and determine the best price at any given time. This means you can stay one step ahead of competitors’ moves and improve your positioning in the highly competitive online market.
Category: Artificial Intelligence
