Post by Rupa on Dec 5, 2023 7:45:25 GMT
Implementation and configuration of algorithms for automatic price changes, that is, for example, setting minimum and maximum prices or rules for personalization of the offer,
Establish protocols for human intervention – for example, when decisions need to be made due to large price fluctuations or availability issues.
Using AI to recommend promotions and discounts
Artificial intelligence can also analyze the collected data in terms of how customers react to various promotions. And then suggest the most effective offers and discounts based on that.
This is especially important if the store offers personalized deals to Email List individual customers. This is because you can use artificial intelligence not only to finely segment customers but also to analyze their price sensitivity.
Price sensitivity is the degree to which a change in the price of a product or service affects a change in demand for that product or service. The higher the price sensitivity, the more demand is influenced by a small change in price. To take full advantage of AI’s potential in optimizing pricing strategy, it is worth implementing in e-commerce:
An analysis of how customers reacted to previous promotions and discounts – for example, whether a 5% price cut resulted in more sales than free shipping or the addition of a bonus product of that value,
Testing different levels of discounts and their impact on performance indicators.
AI not only helps implement pricing strategy but also monitors. Advanced AI-based analytical tools can accurately measure how price changes alter the effectiveness of a pricing strategy, such as how they translate into margins or conversion rates.
On the one hand, by analyzing price sensitivity and monitoring each customer’s buying behavior with artificial intelligence, it is possible to assign each customer an individual “promotion factor” reflecting their susceptibility to price cuts. This gives the store the ability to target personalized promotions.
Establish protocols for human intervention – for example, when decisions need to be made due to large price fluctuations or availability issues.
Using AI to recommend promotions and discounts
Artificial intelligence can also analyze the collected data in terms of how customers react to various promotions. And then suggest the most effective offers and discounts based on that.
This is especially important if the store offers personalized deals to Email List individual customers. This is because you can use artificial intelligence not only to finely segment customers but also to analyze their price sensitivity.
Price sensitivity is the degree to which a change in the price of a product or service affects a change in demand for that product or service. The higher the price sensitivity, the more demand is influenced by a small change in price. To take full advantage of AI’s potential in optimizing pricing strategy, it is worth implementing in e-commerce:
An analysis of how customers reacted to previous promotions and discounts – for example, whether a 5% price cut resulted in more sales than free shipping or the addition of a bonus product of that value,
Testing different levels of discounts and their impact on performance indicators.
AI not only helps implement pricing strategy but also monitors. Advanced AI-based analytical tools can accurately measure how price changes alter the effectiveness of a pricing strategy, such as how they translate into margins or conversion rates.
On the one hand, by analyzing price sensitivity and monitoring each customer’s buying behavior with artificial intelligence, it is possible to assign each customer an individual “promotion factor” reflecting their susceptibility to price cuts. This gives the store the ability to target personalized promotions.