The world is changing at a pace that is shocking. Yes! It is a digital world now. With Digital transformation.
It requires that you reimagine your business. Although it is an extremely painful wakeup call for many. This is what will help you survive in the industry of retail. It also means one thing: unidentified opportunities for growing your business by appealing your customers. You only need to take the right steps.
The first step towards digital transformation
Acceptance is the first thing you need to do. You cannot survive without digital transformation. It is not only me who thinks like this, but many others also do as well. Businesses should transform as fast as they can. Digitally business can grow, only if mixed with the right experience and business niche.
The next step towards digital transformation
You should know next where you want to start. What is the area that you will be letting the digital part in? As customers do get pickier and costs or operations rise, you need to act fast. So you can avoid drowning. Thinking too long can also make you lose the opportunity. If you get too hasty, you will waste a lot of dollars. Before you invest in solutions for tech, you will need to know exactly what will drive your key.
Why pricing transformation is important
You can either move forward with trial and error. Or you can choose the areas that can bring you the fastest results. Once, of course, you have optimized it. Many sellers start with the basic 3 P’s; Product, promotion, and place. However, they forget the most important fourth element. This is the pricing. Let’s imagine you are opening a new store, upgrading or launching a truly profitable campaign. The projects require several teams that are unsalable and are hard to manage.
As with pricing, currently, it relies on excel or on an ERP system. It is hard and time taking to manage. However, the good news is, if your price is chaotic, you will get the most. Once you have optimized it with advanced technology. The brightest of all is the AI for instance.
Price doesn’t require that you involve other teams. It is great for companies that are more focused on their core strength of the business and outsourcing the rest. What’s best is that it takes weeks to show results after integration and not years!
The AI price optimization allows achieving three goals majorly:
Crafting an optimal value offering:
Set prices that maintain customer loyalty while you reach the goals of your business such as a revenue increase.
Boosting Key Business Indicators:
AI technology sees the potential of each product. It then recommends the best pricing strategy to go for. It even allows you to maximize the performance financially of each product as well as financial performance overall.
Gives a chance to become effective in pricing managers
When equipped with AI, managers tend to not waste time and make errorless decisions.
Adoption of Pricing Software Tips:
If your company researches technology in the search of digitizing the pricing process then the three pieces of advice that may help you are mentioned:
Check if the provider brings the first results in the near future:
Some providers are a team of experts that manually create econometric formulas to help you better your pricing. It is unscalable and slow. The average time is 4-6 weeks. The solution takes 12 months for integration, along with bringing one value that is tangible. This would mean there is no involvement of technology.
Check if the solution is scalable and flexible:
Test the addition of new parameters and data in the system. Moreover, scale it across all stores. Check for its accessibility too. If you have a positive answer to all then you are on the right track.
Check if education is provided by the provider:
A provider that is good will be ready to make your pricing architecture and even teach you. They will tell you each step so you can be an independent user.
Digital transformation has proved to be critical as it puts you near to your customers. The trick here, however, is not to make a fast decision. But it is to start the right thing. I would suggest you begin with price optimization as it will yield you the fastest results. It will also give you the needed head start over your competitors.