Demand Pricing
Using Business Intelligence and Consumer Demand in Pricing Process (Demand Pricing)
It is the process of making decisions in product pricing based on data analysis and business intelligence (BI) and most importantly customer behaviour monitoring. Particular focus is placed on using price discrimination between customers to maximize profits and revenues using past sales data.
From the POSMATIC Product Line
Demand Pricing
Demand Pricing, hybrid forecasting process that will make use of :
- Business Intelligence
- Demand Sensing
- Consumer Behavior Monitoring (RUM)
that will predict the most suited price for a commodity, and by doing so you will end up selling some extra commodities or selling an item(s) they may not buy under normal circumstances.
The other advantage is that demand pricing allows Geo-based (regional) pricing that can help you take advantage of the fact that people in some GEO regions will likely have similar demand/desire for a given commodity than people elsewhere.
likewise there are several methods of pricing methods used in demand pricing
- Price Skimming
- Penetration Pricing
- Value-Based Pricing
- Yield Management
Why Go for demand pricing?
Retail Has Transformed More In a Year Than in the Last 10 years
2019 - 2020 period was an unprecedented year and left the world in disruption and uncertainty. But, with the social distancing mandates and mandatory home quarantines came the sudden and lasting shift to eCommerce. Let’s look at some changes that prove the point that retail’s massive digital transformation is here to stay:
- With digital trasnformation taking place in most ratil markets the global online sales gone beyond four trillion US$ threshold in 20201
- Global Online’s share of total retail sales accelerated in 2020 with ecommerce penetration hitting 20.2%2 in 2020
Source: Digital Commerce 360 estimates; April 2021
What is the future?
as per morgan stanley's global e-commerce growth forecast
and the statistical trend shows that this growth will hold beyond 2026Global e-commerce stocks surged during the early days of Covid-19 but have since slumped. Despite overall slowing economic activity, key trends suggest e-commerce still has room to grow. What it means for economies, industries and investors.
Amid slowing economic activity, 2020 has led to a surge in e-commerce and accelerated digital transformation in all business.
Some will get on to the band wagon and benefit, others fall behind
Many research show that there is a strong uptake of e-commerce across regions, with consumers in emerging economies making the greatest shift to online shopping due to social distancing regulations. But now that the transformation has taken place many business are concentrating on finding ways and means to capture the bigger pie.
Then again in many countries, consumers and businesses haven’t capitalized on pandemic-induced surge in e-commerce opportunities due to persistent barriers.
Apart from costly broadband services, over-reliance on cash, lack of consumers’ trust, poor digital skills among the population and governments’ limited attention to e-commerce, main reason is the lack of interest in digital transformation by the business owners.
Business who will make use of this boom and harness the potential of e-commerce will be better placed to benefit from global markets and current trends for their goods and services in this digitalizing economy, while those who lags behind will risk falling behind even further.
How can capture the bigger pie
The Internet has repeatedly witnessed the deaths of paradigm shifts starting from e-commerce boom in 90s to SEO, social media, email marketing, Facebook targeted ads, and so on. Even-though they dying strategies it sometime helps to bring in customers to your site but, unless you keep them there, they will leave in an instant
Although the argument on whether or not those digital campaign remains a valuable tool for growth-focused marketing campaigns can be debated, there's one thing that cannot be refuted in terms of dying & obsolete marketing tool: is static websites.
Why Static Web Sites are Dying & Obsolete?
- They Cannot Adapt to New Information and User requirement
- They Are Completely User-Blind
- All the content on the sites are Based on Assumptions
Agile Adaptive Interaction
In-order to achieve adaptation fist you need to find out whom you are adapting to. in simple terms you have monitor your customer. You can employ different tools to achieve this task starting from BI repositories to whether around the area in question. but most important factor is client's real time behavior.
then next step is to have a
- Rule base or
- AI engine
However cheaper method would be to have a rule base.
once you have it setup, simply build all your pages do the abstract rendering based on a give page object modified by the outcome of the Rule Base or the AI Engine
About
POSMATIC is a new generation Digital Menu Card/ Product Ordering system developed with 30 years of experience that meets all needs of single branch or chain businesses. We believe that hotels & restaurants can only succeed if they give all their concentration on their food and services. The secret to success is to prepare beautiful dishes in the kitchen and meet the happy customers at the door.
With POSMATIC product line we take all other cumbersome work load like taking orders, and providing detailed information, and most importantly updating them with the progress of their orders, out of the hands of your staff hence your staff has more time to attend to more importunately matters like providing the best food.
If you have questions about POSMATIC, please contact us
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