How does our Dynamic Pricing tool work?
Our pricing tool walks you through a simple 3 step implementation process from setup to price optimization validation to performance management.
Build a secure Data Lake
Our data model is fed with different internal and external data sets with the highest possible level of granularity. We consolidate all relevant data sources to be able to optimise your P&L:
Product catalogue tree (SKU attributes), orders, basket components, shipping cost, revenue, marketing costs… broken down by many dimensions (Point of sale, device, marketing channel etc…).
Coming from various sources such as Google Analytics (via API or Cloud ) or our own SDK.
We consume your feeds or those coming from our third party partners (WorkIt, Netrivals, Price2Spy) to be able to react to any market changes.
Cluster the Product catalogue
We group your products in different product portfolios that have the same attributes.
Build Product Portfolios
We cluster your product catalogue into different portfolios based on your business knowledge and targets.
Define the business targets
You assign a Business Goal and its related constraints to each Portfolio. Eg: “I want to increase my revenue by 5% without decreasing my revenue margin by more than 2%”.
Launch the learning phase
We start by running the first pricing test in order to build the elasticity curves of each portfolio.
Pricing Optimisation at scale
At the end of the learning phase, the solution starts pushing regular price recommendations optimising towards the set business target.
Solution provides you recommendations for implementation
In using our price management software you can visualize & understand each price recommendation we make. You can then validate the pricing structure manually or automatically and export them in the format needed for implementation in your system.
Iteration & Learning Loop
Once the statistical significance is reached, our machine learning algorithms measure the outcome of the price change, understanding the dynamic environment, and computes an adjusted price recommendation for the next iteration.
Measure & Visualise Value creation
Our solution provides you with a clear, unbiased way to measure your performance vs the set target and the rest of your product catalogue.