Research Finds COVID-Driven Shopper Behavior Increases Retailers’ Need for AI-Powered Pricing
Retailers across the United States anticipate that shopper behavior, which has radically changed during the COVID-19 pandemic, will remain fundamentally transformed in the long term, increasing the urgency for more automated, science-based pricing, promotion, and markdown optimizationincluding dynamic pricing.
Retailers across the United States anticipate that shopper behavior, which has radically changed during the COVID-19 pandemic, will remain fundamentally transformed in the long term, increasing the urgency for more automated, science-based pricing, promotion, and markdown optimization—including dynamic pricing. Complete study results, with analysis by RIS News editor-in-chief Tim Denman, are available via a complimentary download.
The DemandTec-sponsored study from RIS News, “Smart Pricing Strategies for the Post-COVID World,” painted a stark picture of how different the retail landscape is now versus even a few months ago. Economic shocks coupled with continuing economic uncertainty have made shoppers more price-sensitive than ever, and 72% of retailers say shopper price sensitivity will increase and remain elevated even after COVID-19. Demand patterns have seen a sea change also as shoppers adjust to being homebound, which in turn impacts which items they are most price-conscious about. As a result, 93% of retailers expect to re-assess these key value items in light of increased price sensitivity.
"With 90% of retailers saying they still have manual or only semi-automated processes for pricing, promotion, and markdown, fast-changing shopper and market conditions increase the urgency to adopt science-based optimization tools," said Cheryl Sullivan, president of DemandTec, an Acoustic company. “The survey found that 60% of retailers are focused on putting AI-powered pricing in place, and we at DemandTec continue to invest and scale to provide them with leading automation and optimization, productized KVI capabilities, and dynamic pricing.” To learn more about DemandTec, an Acoustic company, visit www.acoustic.com/demandtec.
About DemandTec by Acoustic
DemandTec, an independent business unit of Acoustic, is committed to taking AI pricing to new heights. With deep and commanding worldwide retail pricing domain knowledge and experience, DemandTec enables retailers and CPG partners to deliver optimal pricing, promotions, and markdowns to thrive in today’s hyper-competitive retail landscape. DemandTec addresses retail pricing challenges today and into the future with relentless focus, commitment and ongoing investment. For more information, visit www.acoustic.com/demandtec or follow us on LinkedIn or Twitter.
About Acoustic
Acoustic is an independent marketing cloud with the open platform needed for success in a dynamic world. We’re reimagining marketing technology by lessening the burdens of repetitive tasks and equipping marketers with powerful technology that is simple and easy to use. We give marketers more time to do what really matters—to think bigger and put themselves back into the work. We help marketers aim higher, bringing humanity back into marketing. Acoustic serves an international client base of more than 3,500 brands, including Fortune 500 companies, providing digital marketing, marketing analytics, content management, personalization, mobile marketing, and marketing automation solutions. For more information, visit www.acoustic.com.
Additional information about Acoustic is available in the pressroom at https://acoustic.com/press-center/ and on LinkedIn, Twitter, and YouTube.
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