WEBVTT

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First of all, I would say

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the increased availability of data
around customers around the market.

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I would say the other one is the increased

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sophistication of algorithms,
processing power.

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You know, the

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the additional intelligence that

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we actually get to actually understand
what's happening.

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And, you know, the market.

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And then lastly, I would say

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a clear desire to move

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to, you know, more agile, faster,

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pricing to really leverage
all the opportunity.

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So it differs from traditional pricing
approaches because it leverages algorithms

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to understand how to set prices real time
based on available,

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supply and the willingness
of the customers to, to buy it.

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And it basically replaces
a fixed uniform price with something

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which is really tailored
to every single customer.

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And it does so in a way that allows
for a significantly higher value capture.

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There are three main challenges
when transitioning to this game.

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The first one is the ability
to accurately forecast customer demand

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based on whatever price you want to set.

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The second one very important is around

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how do you understand and manage
transparency and fairness,

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which is something that, you know

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in the eyes of all customers,
of course, is massively important.

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And then the other one is
how do you limit the negative perception

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and even potential backlash
of constantly changing prices?

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There's definitely a benefit
from price stability and having customers

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really understand

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what they're going to find, as opposed
to having prices constantly changing

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in order to overcome these challenges
and be successful in dynamic pricing.

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The first one is to invest in advanced
analytics capabilities, to really be able

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to understand and to sell your insights
from large amounts of data, right.

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Then there's this ability to continuously

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refine and, you know, evolve how you do

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pricing based on, you know, what,
what the data tells you.

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And then quite important later on,
how do you communicate the benefits

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to the customers?

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That's the benefit from dynamic pricing.

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If there's a benefit from a a more
tailored pricing to a different users.

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So how can we actually communicate
in a way where the benefits

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are clearly understood?

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Every customer has a different willingness
to pay.

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You need to monitor very carefully
that there's no bias.

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And the price investment and disinvestment
are actually very well aligned to where

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they should be, especially when depending
on the customer willingness to pay

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and and also the risk
for increased competitor reaction,

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any price move or any dynamic
pricing system having unintended

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consequences and triggering price wars,
or just like escalation in pricing,

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unless those are actually managed
very carefully in order to differentiate.

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My recommendation

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would be to first start
to focus on having a highly differentiated

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product, value proposition,

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customer experience, because it's really
not only about pricing,

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but then it's also about how you shape

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the strategy
as part of a broader customer journey.

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And then lastly, it's around

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how you continuously evolve
and refine the way you do pricing.

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it is important to keep, you know, staying

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ahead of the curve, be, you know,
better than other companies out there.

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You know, there's a lot of value at stake.

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And, you need to constantly be, you know,
improving and being better every day at

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doing pricing.