Introducing the Navetti Knowledge Center™

Introducing the Navetti Knowledge Center™

Clients and individuals interested in how we work with pricing often have similar questions. Our new blog portal, written by our ClientCare associates, is our way of providing easily accessible answers to your questions.

Introducing the Navetti Knowledge Center™

Navetti Knowledge Center™ is a place where you can find all the information needed to effectively use Navetti PricePoint™. The Knowledge Center supports our Clientcare Division with readily available information for version 4.6 and higher.

The benefits of the Navetti Knowledge Center™ mean that you can:

  • Access it from Navetti PricePoint™
  • Create issues directly in Navetti Service Desk™ and track the issues
  • Shorten the communication cycle and reduce costs
  • Watch video tutorials to learn more about individual modules and functionality
  • Customize it with tailored content (video or text) based on your needs
  • Chat live with the Navetti Service Desk™ to get help on where to find the answer to your query

How to access the Knowledge Center

In Navetti PricePoint™ click on the lightbulb in the upper right hand corner.

A new page will open. You are now in the Navetti Knowledge Center™, where you can search for articles about your issue.

To search, simply click into the search field and type a keyword (e.g. “Revisions”). If the desired article is already in the dropdown menu, simply click on it and you will be taken directly to the contents of it. Otherwise press enter to search for a list of results.

 

You will be shown the title of each document and a short text that gives you a preview of the contents of the articles.

 

If you cannot find the appropriate article in our knowledge center you can return to the Navetti Knowledge Center™ Start Page where you have several alternatives. You can:

  • Watch our video tutorials
  • Start a chat with us to get help on where to find the appropriate article
  • Write us an e-mail to receive more information

Or

  • Create a request for support or new function.

When you click on “Create a request for help or new function” you will be redirected to our Service Desk where you can create a support ticket to get help on issues/problems, request changes to your Navetti PricePoint™, and follow your previously opened tickets.

Our Navetti ClientCare™ professionals are always available to answer any questions, should you need additional help.

If you have a topic you would like us to cover in our next ClientCare Column, please forward your request to Arsham.mazaheri@navetti.com

Terminology

Terminology

Clients and individuals interested in how we work with pricing often have similar questions. Our new blog portal, written by our ClientCare associates, is our way of providing easily accessible answers to your questions. 

This is the first of a three-part series by Arsham Mazaheri meant to provide insights into how our clients can use Navetti ClientCare™ to their advantage on a daily basis.

I find it quite useful to talk about the general way that we at Navetti ClientCare™ work. This way clients know when to expect what and how from our department. This to me is especially important because of the recent changes occurring in our department, which is moving from an ad-hoc support system to a more structured support system. That also requires collaboration from our clients in order for us to be able to serve them best.

Let’s start with defining some of the most commonly used terminologies in Navetti ClientCare™:

Navetti ClientCare™ is the support division at Navetti which provides supports to Navetti’s clients regarding Navetti PricePoint™ and any other related systems and services including but not limited to, Navetti Apps™, Navetti Agile Integration Suite™ (NAIS), and system integration of Navetti PricePoint™.

Navetti Knowledge Center™ is Navetti ClientCare™ portal to provide Zero-Line support for the clients of Navetti

Information Library is the wiki space that includes all the necessity information regarding the use of any of Navetti products and related systems and services. The information like user guide of Navetti PricePoint™ and Navetti Apps™, upgrade and configuration instructions for Navetti PricePoint™, and useful tips and video tutorials to use Navetti PricePoint™ are all stored and accessible for our clients in our Information Library**.

Navetti Service Desk is the customer portal of Navetti ClientCare™ to provide 3rd line support for the users of Navetti PricePoint™. The portal is used for reporting problems or incidents regarding all products of Navetti, including but not limited to, Navetti PricePoint™, Navetti Apps™, Navetti Agile Integration Suite™ (NAIS), and system integration of Navetti PricePoint™. The portal can also be used to request for change (RFC) on any products of Navetti, including by not limited to new functionalities in Navetti PricePoint™, development of a new Navetti App™, request and installation of a Navetti App™, customization of a Navetti App™, or an existing functionality in Navetti PricePoint™.

A Ticket is an open request in Navetti Service Desk. The request could be either a query, a request for a service, a request for a change, a report of an incident, or a report of a problem, etc. Each ticket in Navetti Service Desk has a unique number which normally starts with NSP.

Service Request is a ticket opened in Navetti Service Desk requesting a service i.e. resetting a password or requesting access to a service. Service Request tickets reported to Navetti ClientCare™ will be handled by Service/General workflow.

Incident (adapted definition from ITIL®) is an unplanned interruption or reduction in quality of any of the services provided by Navetti that needs to be resolved within a specific timeline according to the Service Level Agreement. Incident tickets reported to Navetti ClientCare™ will be handled by Incident Management workflow.

A Problem (adapted definition from ITIL®) is the underlying cause of one or multiple incidents, which if not solved may cause the incident to occur again; thus, a problem may be raised by an incident or it can be detected independently. Problem can be left indefinitely so not bounded by the agreed SLA until an incident happens. Problem tickets reported to Navetti ClientCare™ will not be handled by Navetti ClientCare™. Problem tickets opened in Navetti Service Desk will be reported to Development team for development and bug fixing, and they will be handled by Problem Management workflow.

Change (adapted definition from ITIL®) is an addition, modification, or removal of anything that could affect the provided IT services. Change Request (CR) tickets requested from Navetti ClientCare™ will be handled by Change Management workflow.


** If you are a client of Navetti and you don’t have access to our Information Library or Knowledge Center, you can request access by sending an email to clientcare@navetti.com

Our Navetti ClientCare™ professionals are always available to answer any questions, should you need additional help.

If you have a topic you would like us to cover in our next ClientCare Column, please forward your request to Arsham.mazaheri@navetti.com

10 Tips for a More Successful Price Optimization Project

10 Tips for a More Successful Price Optimization Project

A price optimization project is a major undertaking for any company. There are often multiple internal stakeholders, and it is likely to affect a wide range of internal systems and processes, from basic product management systems to cost and profit allocation and customer relationship programs. When done right, it can be one of the most profitable activities a company can undertake. But when done wrong, the dangers are equally significant.

Based on our experience from hundreds of price optimization projects, we have assembled some general advice for any company that is about to embark on – or is thinking of starting – a price optimization project with the target of sustainable improvements. In our experience, these 10 points are applicable irrespective of whether the aim of the price optimization project is to improve profits, increase customer satisfaction, or create better internal efficiency.

1) It Starts at the Top – C-level Support is Needed

Few things matter more to most CEOs and CFOs than their company’s revenues and profitability. And few things can impact these things faster and more positively than a successful price optimization project. Hence, it sounds like getting support from the top would be a done deal. But things are rarely that str aightforward. Pricing and price optimization represent a lot of opportunities, but there are also risks involved. Pricing has both an internal and external impact, and it must be done well in order to avoid causing frustration, problems, or both.

 

Sometimes a pricing project starts because a CEO or CFO initiates it. But more often, it originates from somewhere in the organization and eventually starts to materialize as a draft project proposal. If you are involved in the development, now is the time to prepare an executive summary of what the intended scope of the project is and what the project hopes to achieve. And of course, what resources are likely to be needed for this – including a senior executive (usually a VP/EVP/SVP, head of business, or similar) to run the steering committee that oversees the project and how well it meets its targets.

If you are on the receiving end of such a project plan, by all means question and challenge the plan and the team, but also consider the consequences of not updating your pricing strategy. And if you are a candidate for the steering committee, do try to accommodate this among your engagements. Chances are it will be one the most profitable activities you will ever overs

2) Excel is a Great Tool for Ad-hoc Analysis, but not for Operational Pricing

Some companies feel they already have control over pricing and how to set prices that optimize revenue and profits. After all, they manage the set-up today and can see the effects of price changes on the demand curve for their products and how this affects profits. Often they have developed their own business intelligence models to analyze changes in sales and profits across the product range.

 

We applaud these efforts, because they are generally done by people with a deep understanding and insight into the dynamics of their market. But invariably we find that while Excel might be a good tool for analysis, it is not optimal for managing and optimizing prices in a dynamic way, especially if a more agile and responsive pricing strategy is desired. And given the complexity of international sales, where markets, competitive situations and commercial conditions can vary immensely, a dedicated system will soon pay for itself. If we take all different permutations based on product, currency, distribution, and commercial conditions into account, the average Navetti customer manages around 28 million different price points in our system. And by manage, we mean being on top of, setting and implementing pricing strategies, doing tests to verify the strategy, and so on – rather than just coping with price management.

3) Distribute Central and Local Responsibilities Within a Common Framework

In a large organization, there are likely to be many parties that want to be involved in setting and optimizing prices. Often there is a central pricing team working with product and category management, but the local sales organization who faces the customer should also be involved. And then there are a host of other central and local functions – controlling and finance, IT, communications, customer support, etc.

 

Some companies believe that all business decisions should be made as close to the customer as possible – and we tend to agree. But when it comes to pricing, that means working within the pricing framework, not defining it. Hence, our experience shows that successful pricing projects rely on a good balance between central and local resources. It needs a hub: a central team that can establish the project structure, manage the framework, and give each market relevant recommendations. And it needs local teams that provide input to the project team and can optimize prices against local conditions and manage exceptions.

The world is certainly getting more transparent, with data and information available across the globe instantaneously. This is also a compelling argument for why a price optimization project needs to have a certain degree of central project management – because there are fewer and fewer instances of truly local prices. In addition, more companies are also standardizing their operations on a number of core IT platforms, systems, and processes – so it would only be natural for pricing and price management to be one of these core central approaches.

4) It Is a Change Management Project, not a Price List Project

Pricing and price optimization is a process that has implications well beyond the product and market dimension. While the outcome might be defined as a revised price list based on customer-perceived value and competitive adjustments, the consequences for processes and systems tend to extend in many dimensions. The end result is often a change of working processes and approaches as much as it is an adjustment of prices.

 

For example, by adopting a value-based pricing model that is anchored to customer-perceived values, a company can establish a value-based sales strategy as well. Understanding how market conditions impact price levels means better handling of different distribution channels and customer segments, not to mention reduced trading risks. And with better price management tools, there are also opportunities to review how costs and profits should be allocated and which accounting methods the company should follow.

This means that a price optimization project should be treated as a change management project. As with all change issues, different parts and functions in the company will view these changes differently, including the need for any change at all. It means that an important part of the success of the project lies in defining and communicating key strategic issues such as:

  • Why are we doing this?
  • What do we want to achieve?
  • What are the consequences of not doing this?
  • What are the goals of the project (how do we define success)?
  • What are some of the key success factors in the project?

And for each function, to have an understanding for each person’s key concern: “How is this going to affect my role and my way of working?”

5) Communication, Communication, Communication

As anyone who has been involved in a change management project will tell you, it is impossible to communicate too much. Price optimization will affect many different functions internally, and hence the communication needs to be both regular and wide. And it needs to target both your own staff as well as your customers.

 

A good approach is to think of the need as two levels of communication. One level is about communication around the project itself and the changes it involves: why it has been started, what it should achieve, what progress it makes, and so on. The other, and even more important level, is to communicate about the results: why the revised prices are set the way they are. This is something that must be communicated and understood internally by all people who face customers, so that prices can be explained and defended. In that way, the revised prices can trusted by the sales organisation, and unnecessary discounts avoided. The approach also needs to be communicated to customers, so that they understand, can accept, and trust these prices.

A general recommendation is that communication about a change project like this should be regular and reasonably frequent. Don’t wait until you feel you have enough information for a full newsletter – and as a consequence only feel comfortable communicating when the project is almost finished. Another general recommendation is to divide the communication flow into two or three streams: One that is more frequent and which goes to a smaller group of recipients that are more closely related to the project (but not directly part of the project team). And one that is more condensed and not quite so frequent, which goes to recipients that are more in the “nice-to-know” than the “need-to-know” category. If needed, additional tiers of communication content and distribution can also be added.

6) Focus on Desired Outcome Rather than a Specific Platform or Technology

It is certainly rare that a price optimization project takes place without any expected deliverable and/ or results at the end of the project. But at the same time, we would advise for some caution in already defining the deliverables in too much detail in the initial request for proposal. In our experience, the most successful projects focus on highlighting the key issues and problems, and identifying the expectations of what the desired solution should deliver, but have a fairly open view on exactly how that end solution should look or the technology on which it should be based. Clearly there are restrictions and considerations for the delivery, based on aspects such as organizational structures, existing IT systems and platforms, current operating procedures and so forth. However, being too definitive in already identifying the solution specifications in the RFP risks overlooking possible additional features and deliverables that could further enhance the performance of the system.

 

There are two reasons for this. One is the ever-increasing performance and capabilities of modern pricing systems, so that defining the deliverables in terms of a finite system specification might mean that a range of existing features and functions are neither included nor considered, perhaps not even as optional deliverables. Consequently, inviting the system providers to inform and educate their potential customer about new opportunities and pricing strategies is often a smarter approach than already having a fully defined system specification in the RFP. The other is that an RFP is generally written with an inside-out perspective, whereas an important skill of a good pricing system provider is their ability to analyze the existing pricing structure from an outside perspective. This might mean that there are additional opportunities for price optimization results that emerge from the supplier’s analysis in their response to the RFP than were apparent from the start.

7) Pilot + Full Implementation Rather than Step-Wise Approach

You may be familiar with the expression “the way to eat an elephant is one bite at a time.” Some people view pricing projects in the same way: by carefully adding incremental pieces of price optimization technology and processes in a step-wise approach, often evaluating each step before moving on to the next, they hope for a slow but steady improvement in their revenue and profit levels.

 

We think this approach works – in one aspect. But we also know that there are ways of speeding up the process. For example, by setting up a well-planned pilot where results can be evaluated quickly and comprehensively, the lessons of the pilot can be applied in full, rapid implementation across markets. Doing so repeatedly, adding modules and features in sequenced new pilots, is a tried and tested way to optimize prices and increase profits faster.

The key is to have a well-planned pilot, so that all key functions can be tested in a small-scale, but fully scoped, project. Once the “pressure test” has been performed and analyzed, and the approach verified, a full roll-out should be planned and implemented. A key part of this roll-out concerns training and transfer of knowledge to all functions that will be working in the system, so that the new resources can be fully utilized. Even in a step-wise approach, each step should also include a pilot to test the potential implications – which of course adds more time to the full implementation cycle.

8) The Right Cross-Functional Competences on the Team

In order to run a successful price optimization project according to the method described in section 6, our experience indicates that there are a couple of key success criteria that will help ensure that the project meets its intended goals. One of these is the composition of the core project team.

A good cross-functional project team contains a balance of people along two different dimensions. One is the range of different professional expertise areas needed, and the other is the personalities of the people involved. As a minimum, the following experiences and fields of expertise should be represented on the core team:

 

  • Pricing management – someone who knows how prices have been set, managed and optimized
  • Product/sales – someone who understands the category in question and the customers that buy these products
  • Business analysis/intelligence – someone who has experience in analyzing supply and demand changes and the external and internal factors that influence this
  • IT – someone who knows how pricing systems interact – or need to interact – with other systems such as ERP and/or production, sales and financial reporting

Equally important, but often overlooked, is the type of personalities of the people involved. In the same way that different professional competences are needed, it is also important to balance personalities in the team composition. Some people are driven by change and development, whereas others are more motivated by clear goals and structures, and yet others focus on the interaction between people and strive to foster good relations.

Having people with different personalities on the team will ensure a more balanced approach in how the project is run, and it means that the project will have a higher chance of long-term success than if all project team members are cut from the same mould.

9) It Is a Full-Time Job

Another important success criterium for a price optimization project is that the people on the core team are allowed to focus their attention on the project itself, and the numerous tasks that the project entails. Whilst it may be tempting from a cost perspective to assemble the team and let them manage the project in addition to their regular operative functions, our experience is that at least the overall project manager (or managers in the case of shared leadership) should be allowed to focus their attention on running the project and little else.

 

This is especially true if there are expectations for a speedy implementation and evaluation process. This will require a lot of communication and involvement across different parts of the company, which in turn puts high demands on the team’s availability and ability to interact with all relevant functions along the way.

10) Create a Reference Framework in Order to Understand Local/Segment Differences

A key challenge in many price optimization projects is how to cater for local market variations. What works well in one market will not be the ideal solution in another – and vice versa. In our experience, the best way to manage this is to go beyond “how things are today” in order to create a separate definition of “this is what we want to achieve,” i.e. how we believe the ideal situation should look. This also means defining what the different challenges are that have prevented us from achieving this so far. With such a reference model, including relevant price structures, analysis tools, etc., it is also possible to both identify the challenges and opportunities that exist in each local market and to develop practical solutions for how to implement the desired system and price optimization methods.

 

Mats Rönne
Marketing

mats.ronne@navetti.com

Help us Help you!

Help us Help you!

Clients and individuals interested in how we work with pricing often have similar questions. Our new blog portal, written by our ClientCare associates, is our way of providing easily accessible answers to your questions.

Those of you who have worked with our Service Desk may have noticed that you always get the chance to give us feedback regarding our service when the ticket you have reported to our Service Desk is closed. This is actually a great opportunity for us at Navetti ClientCare™ to assess our practices and improve the provided support.

With explanatory feedback from you, the end user, on what went well and what could have been improved upon during your experience with our Service Desk, we can improve our methods with every chance we get. However, our statistics show that many of our clients do not take advantage of this opportunity.

It may be interesting for you to know that the recent statistics from the last year of our Service Desk shows that we get feedback less than 15% of the time, even though we only need a single click from you to rate the received service by giving 1 to 5 stars. Of course, it is always beneficial and thoroughly appreciated if we can receive more constructive feedback on what worked and what didn’t when it comes to our support. Last year’s statistics show that of the 15% that clicked to give us feedback, less than 18% included their experience with us on what can be improved in our services

Of course, we constantly strive to identify areas for improvement in our services and work hard to satisfy our clients; but always a little hint from our end-users goes a long way. For that, in the latest issue of my Navetti ClientCare™ blog, I have listed five quick and easy ways that you can help us to help you:

  • Rate our service and give us constructive feedback
  • Addressing a single issue per ticket
  • Close/Cancel the ticket as soon as the issue is resolved
  • Choose the correct issue type when opening a ticket
  • Provide as much information as you can

Rate our service and give us constructive feedback

As I explained above, when a ticket is closed (either by you or by Navetti ClientCare™) you will receive an email informing you that the ticket you have opened is now closed, asking you to kindly rate the received service (Figure 1)

Figure 1: Rate the service you received from Navetti ClientCare

At this point, all you need to do is to click on the star that best represents the quality of the service you experienced.

Clicking on any of the stars will register your feedback, and at the same time opens a new page in your default web browser that allows for additional comments (Figure 2). Although commenting is optional, it is extremely helpful if you can take a moment (1-3 min) to lets us know what we did well and what can be improved in the future.

Figure 2: Constructive feedback is always appreciated

We review your feedback regularly and for future development plans of our division with the aim to always provide the best service regarding your Navetti PricePoint™.

Addressing a single issue per ticket

It is understandable that when you face multiple incidents at the same time, it is much easier to open a ticket and report all of them at once. However, I can assure you that based upon our experience working with multiple clients in our Service Desk, this does more harm than good. This is mainly because it increases the chance of confusion in the reported incident and the provided solution. This confusion can lead to longer wait times on solutions, due to extra time spent clarifying the issues at hand.

What I recommend instead is:

  • open one ticket per each incident/request
  • if the incidents/requests are related to each other, you can still a create single ticket, and mention the ticket number of the relevant incident/request in the new one. We can easily link those relevant tickets to each other, so our agents can quickly find the relation between those incidents/requests if needed for better support

Close/Cancel the ticket as soon as the issue is resolved

Another cause of confusion can be when the already reported incident/request is resolved, but instead of closing the ticket the user tries to address other matters in the same ticket by asking additional questions. This expands the recorded communication in the ticket, which can make it harder to find the relevant information if it is needed for future related issues.

What I recommend instead is:

  • open a new ticket for the new request/question, even if it can be somehow related to the previous ticket. You can request that we link the two tickets for better context and future reference
  • as soon as the issue is resolved, either let us know the issue is resolved so we can close the ticket, or you can go ahead and close the ticket by yourself from the portal (Figure 3). If the initial problem resolves itself, you can cancel the ticket right away (Figure 3).

Figure 3: Users can close/cancel a ticket from the portal

Choosing the correct issue type when opening a ticket

Currently, when you want to open a new ticket in our Service Desk you have six options to choose from regarding the type of ticket. No matter what type of ticket you choose you will receive the necessary assistance, but for our service improvement purposes it is highly appreciated if you choose the correct type that represents your request.

For example, when an incident occurs, it is important for us to know if the incident has occurred in any built-in functionalities in Navetti PricePoint™ itself, or in Navetti Apps™/reports. This is important because different teams address matters related to both. By assigning the correct type to the ticket, we will have better overview of where our products need improvements, and the correct team can start working on a solution for you right away.

Additionally, since different workflows are assigned to different ticket types (e.g. Incident Management workflow for Incident tickets, and Change Management workflow to RFC tickets), by choosing the right ticket type you ensure smoother and faster service with less confusion because of the correct workflow that will be followed by our team.

This is one of the reasons that I always encourage our clients to report issues via Service Desk portal instead of directly emailing our Service Desk, which instead creates a General Request, and can lead to slower response times.

Figure 4: Types of ticket that can be opened in Navetti Service Desk

Provide as much information as you can

A famous quote attributed to Albert Einstein reads: “Understanding the problem is half of the solution.” The same applies to our Service Desk agents!

Our experience shows that more than half of the time of our agents spend on resolving issues goes towards communication with users to clarify the problem. This is most often due to a lack of information about what causes led to the incident.

To ensure shorter waits we recommend that you include the following in your ticket:

  • the steps we need to take to replicate the problem on our end
  • related screen shots or other related files (e.g. .xlsx or .xml files)
  • clear description of your expectations
  • any examples that could help us investigate the cause of the incident

By doing this you can help us avoid any delays in resolving your issue and getting your day back on track!

 

</p

Arsham Mazaheri
Head of ClientCare

+46 (0) 70 032 63 79

arsham.mazaheri@navetti.com

Artificial Intelligence and Machine Learning Add a New Level of Possibilities in Navetti PricePoint™ Price Optimization Solutions

Artificial Intelligence and Machine Learning Add a New Level of Possibilities in Navetti PricePoint™ Price Optimization Solutions

Navetti is introducing a general machine learning and adaptive artificial intelligence engine in its state-of-the-art pricing software suite Navetti PricePoint™. Advanced machine learning and analytical methods can be applied across all stages in the pricing waterfall, from centrally defined pricing strategies to locally adjusted specific executions for individual customer orders. It means that the system can be customized to individual client needs faster and reduces time to market for new features and developments, and Navetti is working with a range of blue-chip clients to develop customer-specific price optimization solutions. By applying these facilities across the different modules in Navetti PricePoint™, Navetti helps its customers understand, optimize and capture additional business opportunities through more precise pricing structures, more efficient internal handling and more predictable business outcomes.

Close-up of pen pointing at the computer screen of the business broker

Pricing and price optimization is already a big data business application, taking in and analysing millions of different data points from all aspects of the business environment, such as product specification details, transactional data (who bought what, when, where and how), supply chain situations, competitive environment and channel-specific conditions. Hence, it is no surprise that price optimization systems increasingly are applying advanced algorithms and machine learning capabilities to further enhance system capacity and capabilities.

“Many vendors talk about Artificial Intelligence and Machine Learning (AI & ML) as an add-on to their legacy systems”, says Andreas Westling, CEO of Navetti. “For us at Navetti, this kind of advanced adaptive intelligence has been a key perspective in our development of our solutions for a long time. Our Navetti PricePoint™ platform and its optimization algorithms have been designed to incorporate applied artificial intelligence and machine learning ever since we started to develop the fourth generation of Navetti PricePoint™. A key difference is that we apply AI & ML across the entire pricing waterfall, which means our customers can use this to improve all stages of the customer journey. Now we are taking the next step by making AI & ML a general engine for all pricing processes and their corresponding modules in Navetti PricePoint™, and we have already started to apply this together with several major clients when developing customer-specific solutions for both e-commerce and traditional manufacturing applications. In this way, we are offering our customers the best of two worlds: a fully developed off-the-shelf system that can be configured to our customer’s specifications, fully integrated and implemented in a matter of weeks, and an AI & ML engine for rapid additional developments. In addition, we expect AI & ML developments to take place across many other aspects of our customers’ businesses, and hence we have made sure that Navetti PricePoint™ can easily interact and be fully integrated with the AI & ML structures in other parts of our client’s IT solutions.”

“Price optimization is not just about the actual price itself”, Westling continues. “But AI & ML usually starts by methods of recording and learning how different customers respond to different pricing strategies in different situations. By using machine learning techniques like logical inference, neural networks and heuristic search, we can align, adjust and optimize not just the specific price itself but the full customer purchasing experience to suit the transaction process, which has a positive impact on our client’s business objectives. However, most business situations are more complex than that, and hence we are also applying AI & ML in decision processes.” These include

  • Virtual product family creation and market segmentation, i.e. understanding which products and market segments are similar, and how these clusters differ from each other in terms of customer behaviour.
  • Customer value attribution, i.e. understanding how different features and product attributes generate value for different types of customers and market situations.
  • Deeper business logic understanding, i.e. understanding how complementary attributes such as competitive structures, customer support, supplier terms and conditions and supply mechanisms influence the pricing mechanics, and how these jointly help define both the optimum price and the total business impact.
  • Advanced demand forecasting, i.e. taking the price optimization results and applying them in the supply chain mechanism, allowing suppliers to balance their inventory and production cycles against expected demand levels.

We know that when customers plan and implement price optimization systems, they look at three different benefits:

  • Sales and margin growth opportunity, i.e. identifying and turning business opportunities to bottom line results through market-driven and customer value-based price optimization.
  • Risk reduction, i.e. companies under pressure from customers and/or competitors with price harmonization needs use professional pricing systems to support them in their pricing logic and operational pricing activities to both reduce risks such as cross-border trading and improve perceived quality.
  • Operational efficiency, i.e.  the ability to take pricing decisions faster and more efficiently throughout the organization.

“With artificial intelligence and machine learning across the entire Navetti PricePoint™ system structure, we are helping customers use price optimization logic across the business operations, with a considerable impact across all three benefit dimensions,” Westling concludes.