Price Image influences both consumer perception and consumer behavior. It affects how a shopper perceives the fairness of your pricing, and determines where and when they choose to shop.
Price Image Optimization (PIO) is a Software-as-a-Service solution that manages your Price Image by recommending item/zone level pricing using behavioral models and patented algorithms. It helps you balance your profit objectives with your Price Image targets.
Challenges With First Generation Optimization
First generation price optimization does not account for how consumers perceive and remember prices. The challenges for older solutions include the:
- Isolation of merchants from the pricing department
- Focus on internal finance
- Complexity of deploying and managing, which requires long lead times and results in higher risk
- Distrust of competitive pricing and assortment data inputs
- Reliance on rules engines that are not optimal for real-world optimization of pricing
Next Generation Optimization
Balancing Your Price Image and Your Profits Using a Nobel Prize-winning Technique
In 1952, Harry Markowitz won the Nobel Prize for developing the Efficient Frontier Curve Theory that maximizes returns on financial portfolios for different levels of risk. PIO uses the same technique to recommend pricing and maximize profits vis-a-vis the desired price image on a product, category, store, region, or corporate level.
No More Garbage In
Clean, reliable competitive pricing data is hard to get, but we have it. Price Image Optimization (PIO) sits on top of the industry’s largest competitive pricing database curated by Engage3 for more than 40 years. It is integrated with our world-class Competitive Intelligence Mangement (CIM) that uses AI and machine-learning to QA data as it comes in. It has a state-of the-art product linking algorithm that matches like products based on demand and supply attributes. PIO integrates the quantitative and qualitative influencers on price image with visual tools to evaluate your strategic choices.
See the Forest and the Trees
Pricing data points and optimization solutions shouldn’t live in multiple systems. Competitive data should be tightly integrated with the supporting systems you use. Having this integration enables both a macro view of the forest and a micro view of the trees.
Make Pricing Decisions Quickly and Confidently
There is an endless combination of variables that can affect your decision – an increase in cost, a change in a local competitor’s price, a need to change your customers’ perception of a key item. A simple dashboard that shows how your price adjustments roll up to your goals makes decision-making easy, so you can act quickly and confidently.