Second-Generation Retail Price Optimization Takes Shape
This IDC Perspective discusses how second-generation retail price optimization takes shape. Retail digital transformation initiatives risk erosion of margin, price image, and customer satisfaction scores if they miss the mark on pricing. While first-generation price optimization efforts by and large failed recent results, current conditions augur well for future success. This IDC Perspective defines retail price optimization within our frameworks for curated merchandise orchestration and unified commerce platform, describes enablers of success, and advises retailers of continuing concerns and cautions."First-generation retail price optimization applications appeared almost 20 years and were met with equal amounts of skepticism, concerns, and optimism. Skeptics were proven the most right," said Greg Girard, program director, Worldwide Retail Intelligent Product Merchandising and Marketing Strategies. "In today's context of digital transformation, a second wave of retail price optimization is gaining momentum. It is as much abetted by new foundations of data, machine learning, process management, integration, and omni-channel commerce as it is mandated by competitive pressure and consumer choice."
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