![]() Our advanced-insights specialists adjusted the algorithms in each of the solution modules.Implemented a dynamic pricing solution that balanced maximizing absolute revenues and increasing productivity.Optimizing the long tail for a large US retailer with more than two million SKUs We serve a diverse set of global retail and consumer clients across industries. We have helped clients improve sales growth 2 to 5 percent and margin growth 5 to 10 percent. The omnichannel module coordinates prices among the retailer’s offline and online channels.The long-tail module helps a retailer set the introductory price for new or long-tail items through intelligent product matching.The elasticity module uses time-series methods and big data analytics to calculate how a product’s price affects demand, accounting for a wide variety of factors, including seasonality, cannibalization, and competitive moves.The competitive-response module recommends price adjustments based on competitor prices updated in real time.click rates, product reviews, and search data). The key-value-item (KVI) module estimates how much each product affects consumer price perception by dynamically evaluating user behaviors (e.g.We also work closely with you to build the necessary capabilities so you can achieve sustainable, consistent, and ongoing pricing improvements rather than one-time price adjustments.įollowing are five modules that can be selected and adapted as needed to customize solutions to client needs: ![]() Once the opportunity is proven, we work with you to prototype, pilot, and build out a dynamic-pricing engine. With the help of internal and external data, we work with your team to implement the minimum viable version that’s suited to your organization. To validate the opportunity, we build a proof of concept using established capabilities and tools. Step 2: Prototype and build your dynamic-pricing capability. The assessment combines advanced analytics with simplicity to deliver a practical answer. We start with a quick assessment and benchmarking project. Our approach to dynamic pricing helps e-commerce companies not only overcome these pain points but also drive revenue and margin growth (in the short and long term). E-commerce pricing has become complex and time-consuming, especially when done manually. Our engine is a Price Advisor module and part of our Periscope Pricing Solutions. Our approach provides online retailers with a proven pricing engine to drive revenue and profit growth. Dynamic Pricing in e-Commerce combines decades of McKinsey pricing expertise and deep industry insights.
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