Comparison of generative pricing and A/B price testing for retailers.
Exploration into how Price Optimization and a generative pricing strategy supports various marketing efforts.
Pricing plays a crucial role in the success of a retailer selling online. It directly impacts every facet of the business from customer acquisition, to sales volume, and ultimately, the bottom line.
In the ever-changing retail landscape, businesses are constantly looking for new ways to gain a competitive edge. One of the most promising new technologies for retailers is generative pricing.
As the seasons change, so does customer demand. While consumers are still riding a summer high, retailers have already moved through back-to-school and planning for the holiday season. This means there is a seasonal sell-through on the horizon.
As a retailer, profitability has long been the ultimate goal and, as fundraising has become more expensive, getting to profitability as quickly as possible is key for many companies survival. We’ve firmly moved from a place of ‘Growth At All Costs’ to “Profit or Perish’ and no other type of business is left more in the lurch than direct-to-consumer (DTC) brands.
It is not easy to be in business these days. Macroeconomics such as inflation, rising costs of goods, fluctuating costs of shipping, supply chain woes combined with changing consumer behaviors and spending, compounded by a shift from growth-at-all-costs to prioritizing profitability - it's enough to give even the most seasoned leader whiplash.
