AI Pricing Platform™
Our AI Pricing Platform™ and experts provide clients with price points that drive sustainable revenue growth.
As the world becomes digitized, the personalization of products and services is becoming the norm. In this complex operating environment, companies can no longer afford to make the wrong pricing decisions. You need to be sure you have the right price, all the time. To help you fully exploit revenue opportunities, you need well-designed pricing machines, in much the same way as farmers need tractors.
Prorize’s proprietary AI-powered platform is built to provide a flexible and custom-made approach to price optimization for a wide variety of industries. At the core of the AI Pricing Platform™ is our powerful model development software, which rapidly identifies the demand patterns and customer preferences to determine the best data-driven, science-based prices.
The AI Pricing Platform™ incorporates decades of research and practical experience in pricing principles and data design. It also includes the latest AI and machine learning algorithms for dynamic pricing.
The AI Pricing Platform™ involves three recurring cycles, or stages, that involve data, science and actionable recommendations to boost our clients’ revenues and profits.
Data Discovery and Technology Infrastructure
Dynamic pricing can be described as both an art and a science.
An important part of the art is defining how your historical data is used as part of the pricing process and algorithms. The data is individual and unique to each business and circumstance. It’s also the foundation of Prorize’s pricing AI Pricing Platform™. Usually, at least one year of historical data is used as input, but the good news is this data doesn’t have to be perfect.
In fact, cleansing and organizing your data is an integral component of our initial engagement with you. Prorize’s sophisticated technology organizes data across multiple variables and identifies data inconsistencies, errors, outliers and exceptions.
We then review the results to determine what needs to be addressed and establish a benchmark going forward. From there, your data will only get better as we continue to collect and use it.
Edelman-Award Winning AI Pricing Platform™
- Enables in-depth data analysis for pricing diagnostics
- Helps to build and configure pricing systems for new industries
- Selects the most effective micro-segments using advanced statistical clustering and decision tree methods
- Effectively manages low-volume demand situations by leveraging hierarchical approaches
- Uses advanced unconstraining algorithms
- Aligns prices based on product features
- Employs advanced forecasting methods and generates probabilistic forecasts as opposed to single point forecasts
- Performs hold-out sampling models using alternative calibration and evaluation datasets
- Employs most appropriate pricing models including deterministic and stochastic nonlinear models
- Encompasses robust reporting capabilities for effective decision making
- Tracks forecast, revenue and other vital KPIs
- Supports centralized or decentralized pricing environments
Demand Forecasting and Optimized Prices
If your historical data is a key part of the art, then the advanced algorithms built into Prorize’s pricing platform is the science.
Prorize employs sophisticated segmentation and customer-choice modeling to estimate customer behavior and demand. Pricing segmentation comprises the foundation of any pricing system because profit opportunities are often hidden within micro-segments. We combine business knowledge, cutting-edge clustering and decision tree algorithms for effective pricing segmentation. We then incorporate customer sensitivity, demand forecasting, and related business conditions to recommend optimized prices at any time frequency – instantly, hourly, daily, weekly, bi-weekly, monthly.
The optimized prices are presented on a single, user-friendly interface that offers you the flexibility to customize your view. From there you have robust sorting, search and look-up capabilities to review the prices for different products and services. You can also set parameters to automatically approve or to manually override price changes. Each time Prorize receives data, a new set of price recommendations is created.
Actionable Insight and Recommendations
When you combine art and science, it produces recommendations that make a difference to your bottom line. Recommendations based on empirical evidence and fact that help you drive change and influence decisions.
Prorize’s unique platform automatically incorporates recommendations and decisions into every data point that improves or depletes your bottom line. How you act on those is entirely up to you. You can deploy and start getting immediate benefits or if there is a specific pricing issue you want to pursue, then you can dig deeper into the data and obtain insights. Our pricing recommendations are actionable and granular, allowing you to get real insight into your products and understand where issues might occur.
REQUEST A FREE PRICING ASSESSMENT
Schedule 45 minutes today with the Prorize team to better understand the health
of your pricing process and opportunities to generate incremental revenue.