How to make smarter pricing decisions with AI

Updated: Sep 12
By: Admin



What are traditional retailers getting wrong – and what can they be doing better?
Retailers have long used rule-based discounting to inform their promotional strategies.
Under this traditional approach, fashion brands plan the depth and range of their discounts
based on historical data, such as recent product performance.

However, this restrictive approach is limited in its effectiveness. For starters, relying on a
product’s past performance alone limits the potential revenue and profit opportunities of the
inventory on hand. What’s more, this method is reactionary in nature, and doesn’t
adequately account for shifting marketing demands, potential future conditions and
fluctuating in-store and online traffic.

To effectively segment customers and products in order to capture greater revenue
opportunities, drive increased demand and gain more market share, retailers need to fully
understand complex market conditions in real-time, and possess the necessary capabilities
to react quickly. This requires advanced data solutions – such as analytical tools with
sophisticated machine-learning functions – and this is where Lynx Promo AI comes in.


How can AI-based dynamic pricing solve these problems?

With data-driven pricing tools such as Lynx Promo AI, retailers can upgrade their existing
approach and optimize their promotion strategies.

AI-powered solutions consider a myriad more factors than legacy methods, which in turn
yields more comprehensive results. And compared to traditional discounting tactics, which
are significantly slower in their ability to react to changing market conditions and demand
fluctuations, AI-based dynamic-pricing models allow for both smarter and faster decision-
making to occur.

This empowers fashion brands to optimize both the accuracy and roll-out speed of their
promotional efforts. As a result, they can attain a positive and lasting impact on long-term
profitability, maximize the value of their inventory and improve their brand strength in a
crowded marketplace – thereby giving them an edge over the competition.

To maintain an advantage in this dynamic, ever-evolving world, retailers need to move
beyond rigid and outdated discounting practices. Instead, they should establish data-
powered, consumer-centric strategies that can respond nimbly to shifting market
circumstances and customer demands.



What does Lynx Analytics’ solution do differently?

Lynx Promo AI has a straightforward set-up, and can be rapidly and seamlessly integrated
with your existing processes. We’ve designed an easy-to-manage tool that ensures minimal
disruptions to your current workflow. Our streamlined solution makes these systems better –
as opposed to replacing them and forcing you to start from scratch.

As specialists in creating and deploying AI-powered models for clients in the retail sector
and beyond, we have an intimate knowledge of the industry, and are able to build high-
performing retail-intelligence solutions using the latest cutting-edge technologies.

Our machine-learning models are expertly trained to achieve human-level decision-making,
but in a faster, granular and more accurate fashion. Essentially, our tool enhances decision-
making activities but allows users to remain in control of the entire process.

Lynx Promo AI offers unparalleled flexibility, and can be customized and configured
according to evolving business needs. For instance, rather than having to be implemented
across an entire network, retailers can select the specific markets and channels in which
they wish to deploy the product.


What must clients provide us with to make use of Lynx Promo AI?

All Lynx Promo AI needs is access to your data. By using this to inform and train our AI
models, we can provide you with a solution that’s tailored to your organization’s unique

Does Lynx Promo AI replace human output?

Lynx Promo AI Is designed to boost capabilities of your existing workforce, not to replace it.
This combination makes your manual processes more efficient and allows you to achieve
greater output in less time and in a cost-effective manner.

What’s more, as Lynx Promo AI can be deployed selectively, companies remain in full
control of how and where to use the tool. This targeted approach empowers pricing
specialists to focus their time and energy on high-value markets, while our automated
solution takes care of the rest.

By combining human effort with an AI-powered solution that incorporates advanced
performance-tracking methodologies and margin safety nets, you can confidently scale
decision-making activities, determine pricing in real-time and amplify your promotional

What are some current uses and future developments for Lynx Promo AI?

Through the use of our pricing tool, Lynx Analytics helped a leading global fashion retailer
achieve a significant revenue increase in 2021. Looking ahead, we intend to extend its use
to account for even greater factors – including competitor pricing and consumer behavior.

All in all, Lynx Promo AI is an ideal, cost-effective way to boost your in-house capabilities. It
can provide your commercial department with the data-driven support it needs to achieve
optimal results, and ultimately strengthen your bottom line.