Optimising prices helps keep your business profitable and ensures that your products are priced appropriately for your target market. If a human were to calculate the optimal individual prices for every product you have on offer, it would be a huge drain on time and resources - especially as this price would fluctuate depending on uk consumer data list outside influences. This is a calculation that can be carried out instantly and continuously through machine learning, which is capable of monitoring all of the influencing factors that go into deciding an optimal price.
This includes taking into account issues such as sales cannibalisation (where a discount on one item leads to a fall in demand for similar products) and the halo effect (when a promotion of one product leads to more sales in products it is commonly associated with). These factors can be hard for people to predict but are patterns easily identifiable by machines.
Machine learning algorithms can also monitor your competitors’ prices and market conditions and adjust your prices accordingly. This process can be automated, which removes the need for these changes to be monitored and implemented by individuals.
Machine learning is particularly useful for targeting your customers more effectively through personalisation, especially at scale. Even if you’re lucky enough to have millions of customers, you should still want to provide each of them with the best possible customer experience - and that calls for personalisation. Thankfully machine learning can take the hard manual work out of this process - and continually improve its own processes based on data it collects.