Essential Business Applications: Customer-based pricing
About the course
This course covers the topic of pricing from a data & AI perspective. We discuss how to use insights on individual customer level to optimize pricing on individual level, but also on segment level or on the total population. We go over common challenges and requirements in using the right data sources and which machine learning models and insights are required. Furthermore, we discuss different strategies and approaches to actually set your prices, once you have built your models and collected price insights. Pricing at every company and in every use case is different, but after having completed this course, you will be well-equipped to use data & AI to benefit pricing efforts in any situation.
Why this is for you
Setting the right price on a product can make the difference between being wildly successful with the product, or it failing miserably. However, finding the right price for any product or service is a lot harder than just picking any number. Data & analytics has a lot to offer in making sure you set the right price, for the right person. To successfully use a data-driven approach to pricing, you need to understand the theory behind pricing, and how this translates to a data & analytics challenge in your particular application. During this training you will obtain the right basis to benefit optimally from data & analytics in your future pricing efforts.
Pricing is a key value domain to which there are many ways in which AI solutions can contribute. Therefore, this training is of broad interest. It primarily benefits business analysts, data scientists and business experts who want to learn about the opportunities for and benefits of data-driven pricing. However, the training also benefits data and AI engineers who are involved with the topic of pricing from a data technology perspective.
What you’ll learn
During the course, we will discuss the topic of pricing through the lense of data & AI. First, we go through the (basic) theory of pricing, focusing mainly on the fundamentals and application of price elasticity. Then, we will discuss how to use data and machine learning to model price elasticity in various situations. You will see that there are many ways to achieve this, each with their own benefits and disadvantages. The choice for the best applicable method will often depend on the data and resources available to you. We will discuss in-depth how to make this choice. Finally, we will discuss how to align pricing strategy with company goals and values.
Each of the topics will be illustrated with multiple examples, and various exercises and cases. The agenda for the day is as follows:
- Fundamentals of pricing
- How to determine price elasticity
- Price elasticity on customer level
- Strategies for pricing
- Towards a data-driven pricing organization
After this course, you will be able to:
Theory and practical use
- Explain how data-driven, customer-based pricing can be developed as an AI use case, including the elements required for making this approach successful
- Explain the concept of price elasticity, and understand how to apply the concept, including on segment level and individual customer level.
- Make informed decisions on how to set-up a modelling approach for data-driven pricing
- Define strategic price scenarios based on business goal and data-driven approach
All trainings in the GAIn portfolio combine high-quality standardized training material with theory sessions from experts and hands-on experience where you directly apply the material to real-life cases. Each training is developed by top of the field practitioners which means they are full of industry examples along with practical challenges and know-how, fueling the interactive discussions during training. We believe this multi-level approach creates the ideal learning environment for participants to thrive.