AI Driven Dynamic Pricing and Promotion Optimization Workflow

Dynamic Pricing and Promotion Optimization

1. Data Collection

1.1 Identify Data Sources

• Sales data from CRM systems
• Market trends from industry reports
• Customer behavior data from web analytics

1.2 Data Aggregation

• Utilize tools like Google Analytics and Tableau for data visualization and aggregation.
• Implement APIs to pull data from various platforms.

2. Data Analysis

2.1 Historical Data Analysis

• Employ AI-driven analytics tools such as IBM Watson Analytics to identify pricing trends.
• Analyze past promotional effectiveness using Tableau for visual insights.

2.2 Predictive Analytics

• Use machine learning algorithms to forecast demand and price elasticity.
• Implement tools like DataRobot for building predictive models.

3. Pricing Strategy Development

3.1 Dynamic Pricing Models

• Utilize AI platforms such as Zilliant to create dynamic pricing models based on real-time data.
• Incorporate competitor pricing analysis using tools like Price2Spy.

3.2 Promotion Strategy Formulation

• Leverage AI tools like Optimizely to test various promotional strategies.
• Analyze customer segmentation to tailor promotions effectively.

4. Implementation

4.1 Deploy Pricing Changes

• Use automated systems to implement pricing updates across all sales channels.
• Monitor changes in real-time using dashboards from Tableau.

4.2 Launch Promotional Campaigns

• Utilize marketing automation tools such as HubSpot for campaign execution.
• Employ social media platforms to amplify promotional reach.

5. Monitoring and Optimization

5.1 Performance Tracking

• Monitor KPIs such as sales volume and customer engagement using Google Analytics.
• Utilize Salesforce for CRM tracking of customer responses to pricing changes.

5.2 Continuous Improvement

• Implement A/B testing with tools like VWO to refine pricing and promotional strategies.
• Use feedback loops to adjust strategies based on real-time performance data.

6. Reporting and Insights

6.1 Generate Reports

• Automate report generation using Tableau to provide insights on pricing and promotion performance.
• Share findings with stakeholders through interactive dashboards.

6.2 Strategic Recommendations

• Provide actionable insights for future pricing and promotional strategies based on AI-driven analysis.
• Conduct quarterly reviews to adapt strategies to market changes.