According to Coresight Research’s analysis, using AI-based pricing solutions, retailers across different verticals can increase annual revenues by 10%, on average, and improve margins by as much as 5%, but retailers need to better integrate AI pricing with other systems to maximize its potential. Another recent Coresight Research survey found that more than half (52%) of retailers cannot execute at least 10% of their promotional campaigns properly and are mispricing 10% of their products under any given category, in any given selling period.
“The consumer is more price sensitive today than they have been in years, which makes it critical for retailers to have the right insights at the right time to be able to adjust pricing in real-time,” said Coresight Research CEO Deborah Weinswig. “What we learned from this survey is that while retailers are using AI pricing tools, most still have a long way to go to integrate pricing tools with other enterprise technologies and systems to maximize its benefits. The retailers who integrate the fastest are going to be the companies that we see rising above economic driven pricing challenges in the months ahead.”
“Recent advancements in machine learning have made sophisticated pricing technology accessible to retailers of all sizes, empowering them to implement complex pricing strategies that deliver optimal prices quickly and efficiently,” said Alex Galkin, Founder and CEO of Competera. “We’re seeing more investments in solutions that harness the latest deep learning technology, which can process 10x more pricing and non-pricing factors than humanly possible, to continuously calculate billions of price combinations. With the help of these AI tools, pricing becomes a means to stronger profitability and customer loyalty.”
Access the full survey findings, analysis, and recommendations in The Future of Pricing: How AI Is Transforming Price Planning in Retail report.
Source: businesswire/Coresight Research
