Every business needs data-driven insight into its pricing. But getting at true price effects is tricky. How much of that turkey did you sell because you discounted, and how much because it was Thanksgiving?
First, you need data scientists. They will tell you to run many experiments, but you’d need to hire engineers to build a system for that. And you can only change a few prices once a month. There are price stickers to change and promotional materials to print. Can’t we just look at our sales history?
As it turns out, now you can. The Interactive Pricing Analytics mitigates the two worst pitfalls of modeling price sensitivity from historical data: confounding and data sparsity. It can be installed into your Azure subscription in four clicks. In the solution dashboard, you can see optimal pricing recommendations, item elasticities at a finely granular level, estimates of related-product effects such "as cannibalization", forecasts given current prices, and model performance metrics.
Direct interaction with the pricing model in Excel lets you simply paste your sales data there and analyze your prices without the need to integrate the data into the solution database first, simulate promotions and plot demand curves (showing demand response to price), and access dashboard data in numerical form.