Dynamic pricing solutions help retailers in a surprising number of ways. Through AI tools and the ability to anticipate customer needs, these systems convert big data into actionable insights to enhance pricing decisions. Retailers can use price to manage inventory, find maximum-profitability price points, or compete more effectively with other retailers.
However, there are a lot of vendors out there selling dynamic pricing platforms, and it can be difficult to tell the difference between all the different dynamic pricing platforms and solutions on the market today. Some specialize in specific industries, while others tout their AI capabilities, their competitor-monitoring capabilities, or real-time information.
If you’re ready to adopt a dynamic pricing model, here are six things you should look for in your dynamic pricing provider.
User Friendly Tools
Find out from your vendor how much time your pricing management team needs to use their new tools. Ideally, you’re looking for a user-friendly software platform where your team can get up to speed and start working immediately after it’s been integrated into your pricing system.
Functionality is Key
Your dynamic pricing platform needs to analyze data, track competitors, and implement your pricing strategy. APIs allow integration into existing systems, rather than forcing completely new platforms on overworked pricing managers.
You want a platform that shares information throughout the company, providing your sales, marketing, and finance teams with the information that they need to understand the impact of price on their departments, plans, and reporting.
Don’t Compromise on Trust
Make no mistake. If you don’t fully trust a dynamic pricing platform vendor, walk away. This is a vendor who will have deep access to your proprietary data, pricing strategy, and corporate secrets. Make sure that they have an impeccable ethic that you can trust.
Any vendor you are considering should have a customer success team in place, to provide you with both training and technical support. This will smooth out the adoption process, enable a faster go-live date, and ensure that any issues with the system are quickly resolved.
There are plenty of places in business where testing out an unknown vendor makes sense, but a dynamic pricing digital transformation is not one of them. Before choosing a platform, learn about your vendor’s experience and track record. Ask for references, existing client names, and success stories.
Creativity in Pricing
There are a number of ways businesses strategize over their pricing. Inventory turnover, highest profit, and increased market share are three very different motivators for determining a price, each with their own advantages and drawbacks. However, it’s important to find out if your vendor can help you explore other avenues for determining price. Their creativity could open up new, unexpected opportunities.
Find out how Quicklizard is helping retailers adopt dynamic pricing to help maximize profits. Sign up for a demo today.