To sustain your business profits in the long run, finding the right prices is the primary step. As we often quote McKinsey & Company,

“On average, a 1 percent price increase translates into an 8.7 percent increase in operating profits.”

To make the price-setting process across a large product assortment quicker, it’s best to use an AI-based pricing strategy assistance. It suggests the accurate settings within Symson to set the right prices. Compared to our smart technical support, the AI-powered pricing strategy assistance provides strategic guidance on pricing by simulating various market scenarios. It also analyses data on sales performance.

‍

• In addition to strategic guidance, the LLM assesses existing prices, marketing Return on Ad Spend (ROAS), and other critical factors to offer precise pricing recommendations.
• By analysing these elements, the LLM draws nuanced conclusions, ensuring each factor is optimally balanced to enhance profitability.
• This comprehensive approach allows businesses to make informed pricing decisions that reflect market conditions and sales performance, leading to sustainable profit growth.

Likewise, finding optimal pricing strategies is a complex process that considers many factors - which the LLM-powered pricing assistance analyses seamlessly. In this blog, let’s look closely at how such a smart feature can assist you in finding the optimal pricing strategies.

‍

What is AI-powered Pricing Strategy Assistance?

A smart pricing strategy assistance, such as the one integrated into SYMSON's pricing platform, does more than provide tech support—it essentially acts as a pricing expert with an encyclopedia for a brain and immense computational abilities.

While simulating different scenarios is a valuable feature, akin to running predictions, its primary function is to guide pricing strategies by leveraging its vast knowledge and computational prowess.

So, you can simply request it to recommend a fitting pricing strategy for your product or a category of products and find a smart solution that the assistance recommends due to its immense ability.

Here are a few examples of tasks that our LLM-powered tool can do for you:

ROAS Analysis for Marketing Campaigns:

• Provide an analysis of the ROAS for our last three marketing campaigns on Google AdWords, Facebook, and LinkedIn.
• Highlight which channels delivered the best return and suggest how we can reallocate our budget to optimise future campaigns.

Budget Allocation Scenarios:

• Simulate different budget allocation scenarios for our upcoming quarter.
• How would shifting 20% of the digital advertising budget to social media impact our overall ROAS?

Advertising Channel Performance Evaluation:

• Evaluate the performance of each advertising channel we used in the past year.
• Identify which channels are underperforming and why.
• Provide actionable insights to enhance channel efficiency.

Predictive Model for National Campaign ROAS:

• Develop a predictive model to forecast the ROAS of our planned national campaign.
• Determine which variables are most predictive of a successful advertising return.
• Suggest ways to optimise our approach based on these findings.

Creative Assets Performance Analysis:

• Analyse the performance of different creative assets used in our recent digital campaigns.
• Identify which creatives are performing best in terms of generating high ROAS.
• Suggest modifications or new directions for future creatives based on this analysis.

This saves time for you to assess things manually and check all factors to come to a solution. The smart pricing strategy assistance is similar to our AI-based Technical Support. But, in addition to solving problems and explaining Symson, pricing strategy expert can also recommend the best settings for different tasks on the Pricing Platform.

‍

What are the Capabilities of the Smart Price Strategy Assistance?

Our smart pricing assistant has been specially trained using a lot of detailed information about the Symson Pricing Platform. It has a deep understanding of all the pricing strategies and functionalities of SYMSON. But it can also learn more and adjust according to your needs and goals. Meaning, that you can even share your data and train it to give precise answers that fit your pricing or business needs.

Here’s what the main strength of its functionality covers:

1. Analysing and Suggesting Price Settings

The strategy assistant is trained extensively in pricing data and scenarios, enabling them to understand and suggest the best pricing strategies across different tasks and market conditions. Their ability to analyse large amounts of data means they can recommend settings that optimise profitability while considering factors like customer loyalty.

2. Personalised Learning from Your Data

It not only understands general pricing strategies but also learns from your data to tailor answers specifically to your business case. This personalised approach allows it to refine its recommendations, ensuring precision that aligns with your unique market position and business goals.

3. A Practical Example of a Simulation

If you want to increase the profit margin on a smartphone without losing customer loyalty among young adults: this feature in Symson recommends adjustments to settings such as the Customer Loyalty Score, Price Elasticity, and Price Sensitivity. It then simulates the outcome of these changes to predict their impact on both sales and customer satisfaction.

‍

How Businesses Benefit by Using LLM-based Systems in their Pricing Process

You get smart suggestions without having to execute any manual assessments and analyses. Thereby, you can save ample time in finding the settings for an optimal pricing strategy.

1. Find tailored recommendations

Businesses can receive tailored pricing recommendations that are aligned with their specific market dynamics and business goals. This personalised advice ensures that pricing strategies are not only theoretically optimal but also practical and applicable in real-world scenarios.

2. Run simulations and make dynamic adjustments

The real power of an LLM-powered functionality is vast, and our smart LLM-based tool comes from its ability to simulate different pricing strategies before they are implemented. This allows companies to foresee potential outcomes and fine-tune their strategies, significantly reducing the risk associated with pricing decisions.

3. Cut down time spent on analysis

You can jump towards quicker strategy implementation thanks to its pricing recommendations. You can even wish to assess the suggestion. Either way, you can significantly reduce the time taken to find the correct combinations and settings with such smart systems like that in SYMSON.

‍

How can you Employ AI-based Tools for other Use Cases?

Smart algorithm-based tools extend beyond their basic functions, providing diverse applications to enhance business operations. SYMSON is equipped to help with any unique needs not listed here.

For assistance with advanced algorithms, you can contact us for guidance.

Here are a few more applications of smart AI-based tools:

• Customer Scanner Review: Suggests process or product improvements based on buyer feedback.
• Technical Support: Enhances users' pricing strategy refinement.

• Pricing Knowledge Simulator: Fills expertise gaps and conducts pricing workshops.
• Business Process Optimisation : Provides templates and insights for better team management.
• Diagnosing Margin Leakages: Identifies and addresses margin loss issues.
• Rebate : Manages and optimizes rebate programs.
• Marketing ROAS: Boosts return on advertising spend.
• Create Your own Ai-based tools: Enhance functionalities with smart algorithm-based tools designed specifically for a task.

‍

How you can Use Smart Pricing Strategy Assistance to your Advantage?

AI-based assitance like Symson’s offer a transformative tool for businesses aiming to master their pricing strategies. By combining deep learning algorithms with practical simulations, these models provide insights that are not readily apparent through traditional methods. As businesses strive to stay competitive in changing markets, the strategic use of LLMs in pricing can be a game-changer, ensuring that pricing strategies contribute positively to both profitability and customer loyalty.

So, in general, embracing LLM-based tools and assistance in pricing is not just about adopting new technology; it's about advancing your business strategy with precision and foresight.

‍