Pricefx, the global leader in cloud-native pricing software, today announced it has released the industry’s first AI-powered market simulation solution. Market simulation is designed to enable price optimization in context of the overall product portfolio and the competition. It uses Pricefx Next Gen AI technology to simulate and predict the impact of pricing on customer purchasing behavior. As a result, businesses can make better business decisions – informed by predicted impact – to accelerate profit growth.
Leveraging AI optimization, Pricefx provides businesses a simulated response to various “what if” scenarios. Market simulation evaluates a range of products, the impact on volumes and optimizes pricing for the full portfolio. It simulates the impact of price change to a product on the surrounding products within the business’ own portfolio to identify potential market cannibalization. It predicts real behavior of customers and competitors by simulating the market response to price changes and demonstrates the long-term market impact including market share changes.
McKinsey’s Global AI Survey found that 40% of marketing and sales departments using AI achieve 6% or higher average revenue growth. In marketing and sales, respondents most often report revenue increases from AI use in pricing, prediction of likelihood to buy, and customer-service analytics. AI is credited with improving the accuracy, scale and speed of price optimization and business leaders report that adopting AI-based price optimization is among the best decisions they made before and during the pandemic to protect margins and resist descending into price wars. McKinsey forecasts that AI-based price and promotion have the potential to deliver between $259.1 billion to $500 billion in global market value.
“Market simulation is the next evolution of price optimization,” said Toby Davidson, Chief Product Officer for Pricefx. “AI-powered price optimization is improving business’ viability, driving more revenue and accelerating profit growth. By adding AI-based market simulation, Pricefx continues to deliver real solutions for our customers’ business challenges. We are extending our leadership position in pricing optimization to deliver new and powerful profitability tools to our customers, with the same fast, flexible and friendly approach they have come to expect.”
Under the newly redesigned Plan, Price and Profit solution sets, Pricefx includes market simulation for subscribers of its Price and Profit packages. The Pricefx Price package provides customers with a comprehensive set of price management tools. It leverages AI-powered price optimization to fine-tune all pricing elements simultaneously with speed and accuracy. The Pricefx Profit package empowers sales teams to autonomously and efficiently handle sales inquiries at a granular level while reaching the best deal outputs to increase profit. It contains an industry-only CPQ with integrated Value Estimation features, coupled with the industry’s leading large deal negotiation and deal management workflow solution.
Pricefx is the global leader in SaaS pricing software, offering a comprehensive suite of solutions that are fast to implement, flexible to configure and customize, and friendly to learn and use. Based on cloud-native architecture, Pricefx delivers a complete price optimization and management platform that provides the industry’s fastest time-to-value and lowest total cost of ownership. Its innovative solution works for B2B and B2C enterprises of any size, in any industry, in any part of the world. Pricefx’s business model is entirely based on the satisfaction and loyalty of its customers. For enterprises facing pricing challenges, Pricefx is the cloud pricing optimization, management, and CPQ platform to dynamically Plan, Price and Profit.
For more information, please visit www.pricefx.com.