Knowing how different buyers value different product features is at best a trial and error process that often goes undetermined by the finest of marketers.
But without this basic information, setting pricing and promotions becomes guess work at the cost of business profitability. Some companies test different incremental price points on the web in an attempt to determine value. But this can take time and not be practical when selling through partners or in dynamic markets. Even worse it causes buyers to delay due to confusion and uncertainty or result in commoditization.
Using classic price-performance curves also do not work as they ignore that a product and its performance are determined by the combination of features inside. Each of these features are valued differently by different segments of buyers or in the marketplace as a whole.
Ideally product planning, bundling, promotions and pricing is set by knowing the “relative utility” buyers place on individual features when combined into a solution.
Imagine a marketing advisor that informs you of the utility of your product features and lets you perform market share simulation based on changing price or features vis a vis your competition. Imagine forecasting with greater accuracy in dynamic markets where pricing and technology innovations obsolete offerings in just 12-24 months.
eXalt Knowledge Bots provide a new way to optimize pricing and promotions and accurately forecast in dynamic markets. The same Knowledge Bots that deliver recommendations to buyers are also learning and getting smarter about buyer choices and preferences. Knowing what buyers value most in dynamic markets is essential in determining optimal pricing, product offerings and bundles and fine tuning forecasting.
Ultimately Knowledge Bots using AI can learn more about buyers than they may know about themselves. Armed with predictive forecasting it can find ways to shape buyer behavior and determine the win-win in buyer interactions - the intersection where buyers find optimal choices and sellers are able to thrive with profitable interactions.
25% of shoppers get weekly or monthly promotional offers from retailers for items for which shoppers would have happily have paid full price.Digital Commerce 360
Benefits of Demand Shaping
Knowledge Bots measure value of individual features. They then deliver actionable insights regarding pricing, promotions, bundling and product introductions.
AI based price optimization is the best defense against commoditization and insuring profitability on every transaction in modern dynamic marketplaces.
Knowledge Bots perform predictive forecasting to help companies better perform in dynamic markets. Too many companies forecast by looking in the rear view mirror based on SKU volume which is of little value in markets undergoing disruption. Selling through indirect channels further obscures visibility - leaving companies to inspect out of date Point of Sale reports that lack detail.
Knowledge Bots give companies a continuous connection to buyer preferences that informs better predictive forecasting. And they can identify demand shifts through indirect and direct channels months earlier than simple POS reports
AI based Knowledge Bots unlock new opportunities and discover winning products with market share simulation. Companies can gauge the impact of product introductions, pricing changes and promotions on market share upfront to get in front of the competition.
Shape Demand and Gain Market Share