Retailers, in a constant battle to fend off price leaders like Amazon and Walmart, know that while offering a low price may not win new customers, having higher prices will definitely cost them existing ones, a new survey from DemandTec by Acoustic has found. As a result, pricing is more critical than ever in retail transactions – and artificial intelligence (AI) can be a big help in making that happen, the study says.
Here are three key findings from the DemandTec survey:
- Less than 50 percent of retailers are satisfied with their ability to establish a winning pricing strategy;
- One in three retailers fear any price change could drive adverse customer reactions;
- 82 percent of best-performing retailers in the study say that AI technology is essential to drive business improvements in the future.
“Retailers that excel at applying data science and AI to pricing optimization can successfully counterbalance consumer price sensitivity with rapidly changing margin and supply pressures,” the report notes.
Click here for a link to download the full DemandTec by Acoustic study.