It’s nearly impossible for human strategists to keep up with buying trends and constantly survey the marketplace for opportunities to showcase inventory. Providing a regular rotation of discounts to loyal customers can be more challenging than it seems.
That’s why many retailers are turning to artificial intelligence and machine learning solutions to help them streamline the rollout of discounts and promotions.
“Dynamic pricing strategies work well for products that are in high demand at certain times (like Saturday night with Uber) and for seasonal products,” writes Susan Guillory, president of Egg Marketing, on the Intuit QuickBooks website. “The force that drives dynamic pricing is one of perceived value — the worth a customer assigns to your product.”
Many consumers are already savvy enough to swoop in at just the right moment to snag the best deals — waiting for discount codes to arrive in their email inboxes via retailers’ newsletters, for example, then purchasing items in their online shopping carts.
As a result, retailers struggle to motivate additional buying behaviors.