Big data, AI, machine learning, deep learning; these seem to be the hottest buzzwords not just in tech but across all the industries today. Businesses are starting to realize the immense potential domiciled in the data they hold and have access to, thanks to advancements in AI-deep learning and Big data analytics to be specific. Price monitoring and prediction is now much more accurate and less tedious than it has been before; aided by data-driven software systems available to modern businesses.
A customer could be in a brick and mortar store checking out your physical items while online on a smartphone or tablet comparing prices from different online vendors. Big retailers such as Amazon use powerful data-driven price monitoring systems to maintain their competitive, almost unbeatable, pricing structure. With the retail market becoming more and more dynamic, price monitoring is an indispensable tool that will allow you to stay ahead of the competition.
A New Way to Monitor Prices- Software-Based Real-Time Price Monitoring
Price monitoring has always been, and remains a powerful tool to not only see what you are up against in terms of competition but to maintain a competitive edge. Traditional price monitoring techniques involved using a multitude of field staff and vendors to gather pricing data for internal analysis.
The rise of E-commerce and mobile shipping pretty much made these traditional techniques obsolete. Now, customers have access to real-time pricing on their smart devices and can, therefore, get the best bargains at the tap of a button. It’s therefore important for today’s businesses to make use of active price monitoring systems. These systems have robust AI-based algorithms that see what your competitors are up to and enable you to react accordingly.
3 Reasons Why You Can’t Do Without AI for Price Monitoring In 2019 And Beyond
Using deep learning algorithms and Big data to monitor, predict and adjust prices is no longer a luxury in 2019 going forward. Here are three good reasons why we can’t do without AI in price monitoring today:
1. Changing Shopping Dynamics– Shopping today is significantly different from shopping ten years ago. It has become incredibly hard to measure customers’ reaction to price changes, incentives (think coupons and loyalty points) and offers from your competitors. Purchasing patterns have become more erratic and therefore harder to monitor with traditional tools. Only smart data crunching algorithms can deal with today’s non-linear shopping data to give you as a business the meaningful, actionable data you need to stay competitive.
2. Variety and Volume of Products/Services– It is not uncommon to find a retailer offering thousands, if not millions, of products on single or multiple markets. This is especially true for big online retailers or brick and mortar franchises. With the increase in variety and volume of products whose prices have to be monitored, it is no longer viable to use traditional price monitoring systems; they are just not practical.
The answer to this problem is big data and AI. Computers with immense processing power can now crunch large volumes of data in a short time and give businesses real-time price monitoring reports to be acted on or better yet, do automatic price adjustments where applicable.
3. Need for Dynamic (Real-time) Pricing– Ok, you probably already have an idea about this but it’s good to stress the need to have a proactive pricing strategy that keeps you above the competition. This can only be achieved through intelligent price monitoring systems that act as your set of eyes in the market. Price elasticity is today, much more pronounced with the growth of E-commerce and price comparison tools available to consumers and competitors alike.
Is AI the Future of Retail Price Monitoring?
Already, huge strides have been made in incorporating AI solutions into present price monitoring and management systems by the biggest retailers and software vendors. It’s hard to imagine a future without dynamic price monitoring systems given what we see today and the amount of interest in AI and Big data. Big tech companies such as Google, Microsoft, and IBM are betting big on AI and Big Data analytics.
Going forward, we will see AI-driven personalized pricing gaining momentum as MI and deep learning systems get better. Ethical issues surrounding personalized pricing still linger but things can only get better. With this in mind, it’s time for all businesses, especially those in retail to find ways to make these new technologies work for them for success.
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