IBM Dynamic PricingIntelligent pricing at digital speed

While online shopping continues to grow, retailers are just a click away from losing a customer.

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In response, and to remain competitive, retailers are adjusting prices more frequently than ever before.

Source: RSR Research Benchmark Report - Learning To Live In A Dynamic, Promotional World, 2015

75% of retailers saw anincrease in price changes

sent to stores and other channels over the last three years

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And they are increasingly recognizing the value of dynamic pricing to improve online margin.

Source: RSR Research Benchmark Report - Learning To Live In A Dynamic, Promotional World, 2015

Rated by retailers as aTop Three Opportunity for Pricing

to Contribute to Business Strategy

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Introducing Dynamic Pricing

Meet Olivia, an online merchandiserShe needs insights and capabilities to help improve the customer experience and drive better business results

Lack of actionable insights to make better merchandising decisions in real-time

Hard to manage a broad online assortment with manual processes and multiple tools

Difficult to track results and respond quickly to competitor and market changes

Unable to coordinate online and store prices Spends more time monitoring competitors

than developing winning strategies© 2015 IBM6

What if Olivia could be empowered to…

Reprice in real-time

Sense & respond to out-price the competition

Bring together online & offline pricing

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Reprice in real-time

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Execute real-time, intra-day, online pricing recommendations at scale and speed.

Maintain competitive position, protect margin, adhere to product relationships and other pricing policies.

Sense & respond to out-price the competition

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Incorporate data from 3rd party price intelligence providers.

Apply price sensitivities to determine reaction to competitor changes and market fluctuations.

Tailor responses to make more intelligent pricing decisions.

Bring together online & offline pricing

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Use data and insights from physical stores to influence and price confidently online.

Coordinate prices across channels to maximize sales, profit and customer loyalty.

Empower business users

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Intuitive dynamic pricing system, designed for and with online merchandisers.

Easy set up, automated processes and data visualizations.

Users can focus on critical pricing activities, manage by exception and save hours a day.

Achieve desired business outcomes faster.

With IBM Dynamic Pricing Olivia can execute…

intelligent pricing at digital speed

Sources: 1 & 2 - http://www.pymnts.com/in-depth/2014/will-dynamic-pricing-improve-ecommerce-margins3 - Per 1,000 products managed. Based on IBM customer interviews.

Increase revenue by 5% (1)

Improve gross margin by 10% (2)

Save 2 hours per day pricing (3)

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The Dynamic Pricing Journey

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Enable the organization for quick reaction to changes in market conditions, such as fluctuations in competitor prices and product demand.

Unleash the power of data. Apply price sensitivity across products, competitors and channels. Use optimization and

online metrics to intelligently inform decisions.

Use cognitive computing to intuitively determine the best prices and promotions for customers in context.

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Pricing LeaderLong track record of success and expertise in retail pricing

Continuous InnovationUnparalleled retail science and research resources

Experience DesignDesign based on a deep understanding of our users

Unmatched InvestmentOver $4 billion invested in commerce in the last 5 years

Why choose IBM?

IBM Commerceibm.com/dynamicpricing

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