What is Price Optimization?
Price optimization is the process of using data from customers and the market to predict the outcomes of different pricing strategies. This helps to generate the most effective price to maximize sales or profitability. To balance revenue, retention and growth, you have to understand how much your customers are willing to pay.
Hear from our Chief Evangelist, Gabriel Smith, for specific advantages of Pricefx’s Optimization and Management Software.
Willingness to Pay (WTP) is the maximum price at which your customers will likely buy. It is a crucial factor in setting the best price while also meeting company objectives such as increasing profit margins, customer growth or both. Historically, WTP was difficult to calculate as it required a lot of transactional and test market data. Moreover, new advancements in Artificial Intelligence (AI) have changed this.
Read on to discover what ROI you could expect with Price Optimization Software.