Use AI to price complex commercial products
Dynamic pricing is a commercial strategy whereby businesses adjust the prices of their goods and/or services on the basis of factors such as demand, supply and competitor pricing, to name a few. The goal is to maximise revenue and profit.
It's a complex strategy to implement. Not only does it require businesses to collect, analyse and action a large amount of data; it's highly sensitive. Setting prices too high or low can alienate customers, leading to lost profits and damaged reputation.
AI dynamic pricing helps businesses overcome the challenges of traditional dynamic pricing methods. AI is the best tool when it comes to analysing large, complex datasets. At Datasparq, we typically using reinforcement learning (RL) when building AI dynamic pricing solutions.
AI-powered dynamic pricing solutions can provide a number of benefits to businesses, including:
AI dynamic pricing solutions can benefit businesses in a wide range of industries, including retail, travel, hospitality and transportation. They benefit businesses of all sizes, from small businesses to large enterprises.
Some of the specific roles that can benefit from AI-powered dynamic pricing solutions include:
A typical Datasparq dynamic pricing solution works by analysing the following types of data:
This data is then used to train a reinforcement learning (RL) model to predict optimal prices for products and services. As our dynamic pricing solution uses reinforcement learning, the model learns from the results of prices it sets. That means the solution typically gets increasingly effective over time.
As outlined above, AI dynamic pricing solutions set optimal prices, helping businesses maximise profits, improve customer satisfaction, reduce costs and increase agility.
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