In this article, we review a dynamic pricing session provided to executives during a February 2020 SVIC Leading Digital Transformation (LDT) program. Taking the form of meetings and workshops with top Silicon Valley companies, the program is a journey of inspiration and learning. Apart from providing participants with personal connections to standout figures in the field of innovation, it teaches them how to achieve business growth in times of disruptive technological change.<\/em><\/p>\n\n\n\n
In this article, we review a dynamic pricing session provided to executives during a February 2020 SVIC Leading Digital Transformation (LDT) program. Taking the form of meetings and workshops with top Silicon Valley companies, the program is a journey of inspiration and learning. Apart from providing participants with personal connections to standout figures in the field of innovation, it teaches them how to achieve business growth in times of disruptive technological change.<\/em><\/p>\n\n\n\n Click here to see forthcoming program dates.<\/em><\/a><\/p>\n","post_title":"Know Thy Customer: How Big Tech Drives Profits with Data and Dynamic Pricing","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"know-thy-customer-how-big-tech-drives-profits-with-data-and-dynamic-pricing","to_ping":"","pinged":"","post_modified":"2020-03-24 11:13:49","post_modified_gmt":"2020-03-24 18:13:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/siliconvalley.center\/?p=6301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_5"};
In this article, we review a dynamic pricing session provided to executives during a February 2020 SVIC Leading Digital Transformation (LDT) program. Taking the form of meetings and workshops with top Silicon Valley companies, the program is a journey of inspiration and learning. Apart from providing participants with personal connections to standout figures in the field of innovation, it teaches them how to achieve business growth in times of disruptive technological change.<\/em><\/p>\n\n\n\n Click here to see forthcoming program dates.<\/em><\/a><\/p>\n","post_title":"Know Thy Customer: How Big Tech Drives Profits with Data and Dynamic Pricing","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"know-thy-customer-how-big-tech-drives-profits-with-data-and-dynamic-pricing","to_ping":"","pinged":"","post_modified":"2020-03-24 11:13:49","post_modified_gmt":"2020-03-24 18:13:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/siliconvalley.center\/?p=6301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_5"};
In this article, we review a dynamic pricing session provided to executives during a February 2020 SVIC Leading Digital Transformation (LDT) program. Taking the form of meetings and workshops with top Silicon Valley companies, the program is a journey of inspiration and learning. Apart from providing participants with personal connections to standout figures in the field of innovation, it teaches them how to achieve business growth in times of disruptive technological change.<\/em><\/p>\n\n\n\n Click here to see forthcoming program dates.<\/em><\/a><\/p>\n","post_title":"Know Thy Customer: How Big Tech Drives Profits with Data and Dynamic Pricing","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"know-thy-customer-how-big-tech-drives-profits-with-data-and-dynamic-pricing","to_ping":"","pinged":"","post_modified":"2020-03-24 11:13:49","post_modified_gmt":"2020-03-24 18:13:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/siliconvalley.center\/?p=6301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_5"};
In this article, we review a dynamic pricing session provided to executives during a February 2020 SVIC Leading Digital Transformation (LDT) program. Taking the form of meetings and workshops with top Silicon Valley companies, the program is a journey of inspiration and learning. Apart from providing participants with personal connections to standout figures in the field of innovation, it teaches them how to achieve business growth in times of disruptive technological change.<\/em><\/p>\n\n\n\n Click here to see forthcoming program dates.<\/em><\/a><\/p>\n","post_title":"Know Thy Customer: How Big Tech Drives Profits with Data and Dynamic Pricing","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"know-thy-customer-how-big-tech-drives-profits-with-data-and-dynamic-pricing","to_ping":"","pinged":"","post_modified":"2020-03-24 11:13:49","post_modified_gmt":"2020-03-24 18:13:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/siliconvalley.center\/?p=6301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_5"};
Well \u2014 maybe just a little more.<\/p>\n\n\n\n In this article, we review a dynamic pricing session provided to executives during a February 2020 SVIC Leading Digital Transformation (LDT) program. Taking the form of meetings and workshops with top Silicon Valley companies, the program is a journey of inspiration and learning. Apart from providing participants with personal connections to standout figures in the field of innovation, it teaches them how to achieve business growth in times of disruptive technological change.<\/em><\/p>\n\n\n\n Click here to see forthcoming program dates.<\/em><\/a><\/p>\n","post_title":"Know Thy Customer: How Big Tech Drives Profits with Data and Dynamic Pricing","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"know-thy-customer-how-big-tech-drives-profits-with-data-and-dynamic-pricing","to_ping":"","pinged":"","post_modified":"2020-03-24 11:13:49","post_modified_gmt":"2020-03-24 18:13:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/siliconvalley.center\/?p=6301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_5"};
In other words: never again will price-wary travelers be constrained by static, pre-filed fares. They \u2014 and consumers across all industries being reshaped by new technologies \u2014 will increasingly pay the price their data dictates. Nothing less, nothing more.<\/p>\n\n\n\n Well \u2014 maybe just a little more.<\/p>\n\n\n\n In this article, we review a dynamic pricing session provided to executives during a February 2020 SVIC Leading Digital Transformation (LDT) program. Taking the form of meetings and workshops with top Silicon Valley companies, the program is a journey of inspiration and learning. Apart from providing participants with personal connections to standout figures in the field of innovation, it teaches them how to achieve business growth in times of disruptive technological change.<\/em><\/p>\n\n\n\n Click here to see forthcoming program dates.<\/em><\/a><\/p>\n","post_title":"Know Thy Customer: How Big Tech Drives Profits with Data and Dynamic Pricing","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"know-thy-customer-how-big-tech-drives-profits-with-data-and-dynamic-pricing","to_ping":"","pinged":"","post_modified":"2020-03-24 11:13:49","post_modified_gmt":"2020-03-24 18:13:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/siliconvalley.center\/?p=6301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_5"};
The punchline is that FLYR\u2019s price determination technology first took flight as a fare protection service for consumers<\/a>. Travelers could pay a small, dynamically-determined fee to lock in the price of an airline ticket before committing to a purchase; then, if the ticket price was higher when they decided to buy, FLYR would refund them the difference. That FLYR has pivoted exclusively to dynamic pricing for airlines tells you all you need to know about where the profit is to be found.<\/p>\n\n\n\n In other words: never again will price-wary travelers be constrained by static, pre-filed fares. They \u2014 and consumers across all industries being reshaped by new technologies \u2014 will increasingly pay the price their data dictates. Nothing less, nothing more.<\/p>\n\n\n\n Well \u2014 maybe just a little more.<\/p>\n\n\n\n In this article, we review a dynamic pricing session provided to executives during a February 2020 SVIC Leading Digital Transformation (LDT) program. Taking the form of meetings and workshops with top Silicon Valley companies, the program is a journey of inspiration and learning. Apart from providing participants with personal connections to standout figures in the field of innovation, it teaches them how to achieve business growth in times of disruptive technological change.<\/em><\/p>\n\n\n\n Click here to see forthcoming program dates.<\/em><\/a><\/p>\n","post_title":"Know Thy Customer: How Big Tech Drives Profits with Data and Dynamic Pricing","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"know-thy-customer-how-big-tech-drives-profits-with-data-and-dynamic-pricing","to_ping":"","pinged":"","post_modified":"2020-03-24 11:13:49","post_modified_gmt":"2020-03-24 18:13:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/siliconvalley.center\/?p=6301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_5"};
Let\u2019s take a closer look at the airline industry, where new tech is reshaping old habits. The California-based startup FLYR<\/a>, founded in 2013, runs a continuous dynamic pricing platform for airlines. When a consumer searches for a flight, FLYR\u2019s system factors all the information it can about the request (the sales channel, current market conditions, competitor prices, and more) and the individual (their user profile, customer segment, product interaction, what have you) to show them a personalized price designed to maximize revenue. This is all automatic, in real-time, and constantly getting better \u2014 thanks to the ever-growing data set being run through ever-improving algorithms. The company boasts its customers will \u201cnever be constrained by static, pre-filed fares again.\u201d<\/p>\n\n\n\n The punchline is that FLYR\u2019s price determination technology first took flight as a fare protection service for consumers<\/a>. Travelers could pay a small, dynamically-determined fee to lock in the price of an airline ticket before committing to a purchase; then, if the ticket price was higher when they decided to buy, FLYR would refund them the difference. That FLYR has pivoted exclusively to dynamic pricing for airlines tells you all you need to know about where the profit is to be found.<\/p>\n\n\n\n In other words: never again will price-wary travelers be constrained by static, pre-filed fares. They \u2014 and consumers across all industries being reshaped by new technologies \u2014 will increasingly pay the price their data dictates. Nothing less, nothing more.<\/p>\n\n\n\n Well \u2014 maybe just a little more.<\/p>\n\n\n\n In this article, we review a dynamic pricing session provided to executives during a February 2020 SVIC Leading Digital Transformation (LDT) program. Taking the form of meetings and workshops with top Silicon Valley companies, the program is a journey of inspiration and learning. Apart from providing participants with personal connections to standout figures in the field of innovation, it teaches them how to achieve business growth in times of disruptive technological change.<\/em><\/p>\n\n\n\n Click here to see forthcoming program dates.<\/em><\/a><\/p>\n","post_title":"Know Thy Customer: How Big Tech Drives Profits with Data and Dynamic Pricing","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"know-thy-customer-how-big-tech-drives-profits-with-data-and-dynamic-pricing","to_ping":"","pinged":"","post_modified":"2020-03-24 11:13:49","post_modified_gmt":"2020-03-24 18:13:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/siliconvalley.center\/?p=6301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_5"};
And Uber is not the only company that knows more about you than you think<\/a>. The incredible proliferation of smartphones over the past decade, combined with leaps in AI and machine learning technology, has led to a world of endless \u2014 and endlessly useful \u2014 customer data. A typical smartphone app might keep track of not just your battery level but your precise location, contacts, connections, physical motions, device model, and much more. All this information can be used to profile you and, well, is there a nice way to say \u201cgouge you for all you\u2019re worth?\u201d<\/p>\n\n\n\n Let\u2019s take a closer look at the airline industry, where new tech is reshaping old habits. The California-based startup FLYR<\/a>, founded in 2013, runs a continuous dynamic pricing platform for airlines. When a consumer searches for a flight, FLYR\u2019s system factors all the information it can about the request (the sales channel, current market conditions, competitor prices, and more) and the individual (their user profile, customer segment, product interaction, what have you) to show them a personalized price designed to maximize revenue. This is all automatic, in real-time, and constantly getting better \u2014 thanks to the ever-growing data set being run through ever-improving algorithms. The company boasts its customers will \u201cnever be constrained by static, pre-filed fares again.\u201d<\/p>\n\n\n\n The punchline is that FLYR\u2019s price determination technology first took flight as a fare protection service for consumers<\/a>. Travelers could pay a small, dynamically-determined fee to lock in the price of an airline ticket before committing to a purchase; then, if the ticket price was higher when they decided to buy, FLYR would refund them the difference. That FLYR has pivoted exclusively to dynamic pricing for airlines tells you all you need to know about where the profit is to be found.<\/p>\n\n\n\n In other words: never again will price-wary travelers be constrained by static, pre-filed fares. They \u2014 and consumers across all industries being reshaped by new technologies \u2014 will increasingly pay the price their data dictates. Nothing less, nothing more.<\/p>\n\n\n\n Well \u2014 maybe just a little more.<\/p>\n\n\n\n In this article, we review a dynamic pricing session provided to executives during a February 2020 SVIC Leading Digital Transformation (LDT) program. Taking the form of meetings and workshops with top Silicon Valley companies, the program is a journey of inspiration and learning. Apart from providing participants with personal connections to standout figures in the field of innovation, it teaches them how to achieve business growth in times of disruptive technological change.<\/em><\/p>\n\n\n\n Click here to see forthcoming program dates.<\/em><\/a><\/p>\n","post_title":"Know Thy Customer: How Big Tech Drives Profits with Data and Dynamic Pricing","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"know-thy-customer-how-big-tech-drives-profits-with-data-and-dynamic-pricing","to_ping":"","pinged":"","post_modified":"2020-03-24 11:13:49","post_modified_gmt":"2020-03-24 18:13:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/siliconvalley.center\/?p=6301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_5"};
Dynamic pricing, which means constantly adjusting prices based on various factors, is not a new concept. The airline industry is infamous for shifting ticket prices up and down, seemingly at random, in the months leading up to a given flight. Or take a more modern example, the ride-hailing platform Uber<\/a>, which adjusts the cost of trips based on current demand using a system called surge pricing. Uber has denied rumours that they also charge more when your phone\u2019s battery is low, but they do know<\/em> when your battery is low<\/a>, and they do know<\/em> it affects your willingness to pay.<\/p>\n\n\n\n And Uber is not the only company that knows more about you than you think<\/a>. The incredible proliferation of smartphones over the past decade, combined with leaps in AI and machine learning technology, has led to a world of endless \u2014 and endlessly useful \u2014 customer data. A typical smartphone app might keep track of not just your battery level but your precise location, contacts, connections, physical motions, device model, and much more. All this information can be used to profile you and, well, is there a nice way to say \u201cgouge you for all you\u2019re worth?\u201d<\/p>\n\n\n\n Let\u2019s take a closer look at the airline industry, where new tech is reshaping old habits. The California-based startup FLYR<\/a>, founded in 2013, runs a continuous dynamic pricing platform for airlines. When a consumer searches for a flight, FLYR\u2019s system factors all the information it can about the request (the sales channel, current market conditions, competitor prices, and more) and the individual (their user profile, customer segment, product interaction, what have you) to show them a personalized price designed to maximize revenue. This is all automatic, in real-time, and constantly getting better \u2014 thanks to the ever-growing data set being run through ever-improving algorithms. The company boasts its customers will \u201cnever be constrained by static, pre-filed fares again.\u201d<\/p>\n\n\n\n The punchline is that FLYR\u2019s price determination technology first took flight as a fare protection service for consumers<\/a>. Travelers could pay a small, dynamically-determined fee to lock in the price of an airline ticket before committing to a purchase; then, if the ticket price was higher when they decided to buy, FLYR would refund them the difference. That FLYR has pivoted exclusively to dynamic pricing for airlines tells you all you need to know about where the profit is to be found.<\/p>\n\n\n\n In other words: never again will price-wary travelers be constrained by static, pre-filed fares. They \u2014 and consumers across all industries being reshaped by new technologies \u2014 will increasingly pay the price their data dictates. Nothing less, nothing more.<\/p>\n\n\n\n Well \u2014 maybe just a little more.<\/p>\n\n\n\n In this article, we review a dynamic pricing session provided to executives during a February 2020 SVIC Leading Digital Transformation (LDT) program. Taking the form of meetings and workshops with top Silicon Valley companies, the program is a journey of inspiration and learning. Apart from providing participants with personal connections to standout figures in the field of innovation, it teaches them how to achieve business growth in times of disruptive technological change.<\/em><\/p>\n\n\n\n Click here to see forthcoming program dates.<\/em><\/a><\/p>\n","post_title":"Know Thy Customer: How Big Tech Drives Profits with Data and Dynamic Pricing","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"know-thy-customer-how-big-tech-drives-profits-with-data-and-dynamic-pricing","to_ping":"","pinged":"","post_modified":"2020-03-24 11:13:49","post_modified_gmt":"2020-03-24 18:13:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/siliconvalley.center\/?p=6301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_5"};
Dynamic pricing, which means constantly adjusting prices based on various factors, is not a new concept. The airline industry is infamous for shifting ticket prices up and down, seemingly at random, in the months leading up to a given flight. Or take a more modern example, the ride-hailing platform Uber<\/a>, which adjusts the cost of trips based on current demand using a system called surge pricing. Uber has denied rumours that they also charge more when your phone\u2019s battery is low, but they do know<\/em> when your battery is low<\/a>, and they do know<\/em> it affects your willingness to pay.<\/p>\n\n\n\n And Uber is not the only company that knows more about you than you think<\/a>. The incredible proliferation of smartphones over the past decade, combined with leaps in AI and machine learning technology, has led to a world of endless \u2014 and endlessly useful \u2014 customer data. A typical smartphone app might keep track of not just your battery level but your precise location, contacts, connections, physical motions, device model, and much more. All this information can be used to profile you and, well, is there a nice way to say \u201cgouge you for all you\u2019re worth?\u201d<\/p>\n\n\n\n Let\u2019s take a closer look at the airline industry, where new tech is reshaping old habits. The California-based startup FLYR<\/a>, founded in 2013, runs a continuous dynamic pricing platform for airlines. When a consumer searches for a flight, FLYR\u2019s system factors all the information it can about the request (the sales channel, current market conditions, competitor prices, and more) and the individual (their user profile, customer segment, product interaction, what have you) to show them a personalized price designed to maximize revenue. This is all automatic, in real-time, and constantly getting better \u2014 thanks to the ever-growing data set being run through ever-improving algorithms. The company boasts its customers will \u201cnever be constrained by static, pre-filed fares again.\u201d<\/p>\n\n\n\n The punchline is that FLYR\u2019s price determination technology first took flight as a fare protection service for consumers<\/a>. Travelers could pay a small, dynamically-determined fee to lock in the price of an airline ticket before committing to a purchase; then, if the ticket price was higher when they decided to buy, FLYR would refund them the difference. That FLYR has pivoted exclusively to dynamic pricing for airlines tells you all you need to know about where the profit is to be found.<\/p>\n\n\n\n In other words: never again will price-wary travelers be constrained by static, pre-filed fares. They \u2014 and consumers across all industries being reshaped by new technologies \u2014 will increasingly pay the price their data dictates. Nothing less, nothing more.<\/p>\n\n\n\n Well \u2014 maybe just a little more.<\/p>\n\n\n\n In this article, we review a dynamic pricing session provided to executives during a February 2020 SVIC Leading Digital Transformation (LDT) program. Taking the form of meetings and workshops with top Silicon Valley companies, the program is a journey of inspiration and learning. Apart from providing participants with personal connections to standout figures in the field of innovation, it teaches them how to achieve business growth in times of disruptive technological change.<\/em><\/p>\n\n\n\n Click here to see forthcoming program dates.<\/em><\/a><\/p>\n","post_title":"Know Thy Customer: How Big Tech Drives Profits with Data and Dynamic Pricing","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"know-thy-customer-how-big-tech-drives-profits-with-data-and-dynamic-pricing","to_ping":"","pinged":"","post_modified":"2020-03-24 11:13:49","post_modified_gmt":"2020-03-24 18:13:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/siliconvalley.center\/?p=6301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_5"};
Which brings us to:<\/p>\n\n\n\n Dynamic pricing, which means constantly adjusting prices based on various factors, is not a new concept. The airline industry is infamous for shifting ticket prices up and down, seemingly at random, in the months leading up to a given flight. Or take a more modern example, the ride-hailing platform Uber<\/a>, which adjusts the cost of trips based on current demand using a system called surge pricing. Uber has denied rumours that they also charge more when your phone\u2019s battery is low, but they do know<\/em> when your battery is low<\/a>, and they do know<\/em> it affects your willingness to pay.<\/p>\n\n\n\n And Uber is not the only company that knows more about you than you think<\/a>. The incredible proliferation of smartphones over the past decade, combined with leaps in AI and machine learning technology, has led to a world of endless \u2014 and endlessly useful \u2014 customer data. A typical smartphone app might keep track of not just your battery level but your precise location, contacts, connections, physical motions, device model, and much more. All this information can be used to profile you and, well, is there a nice way to say \u201cgouge you for all you\u2019re worth?\u201d<\/p>\n\n\n\n Let\u2019s take a closer look at the airline industry, where new tech is reshaping old habits. The California-based startup FLYR<\/a>, founded in 2013, runs a continuous dynamic pricing platform for airlines. When a consumer searches for a flight, FLYR\u2019s system factors all the information it can about the request (the sales channel, current market conditions, competitor prices, and more) and the individual (their user profile, customer segment, product interaction, what have you) to show them a personalized price designed to maximize revenue. This is all automatic, in real-time, and constantly getting better \u2014 thanks to the ever-growing data set being run through ever-improving algorithms. The company boasts its customers will \u201cnever be constrained by static, pre-filed fares again.\u201d<\/p>\n\n\n\n The punchline is that FLYR\u2019s price determination technology first took flight as a fare protection service for consumers<\/a>. Travelers could pay a small, dynamically-determined fee to lock in the price of an airline ticket before committing to a purchase; then, if the ticket price was higher when they decided to buy, FLYR would refund them the difference. That FLYR has pivoted exclusively to dynamic pricing for airlines tells you all you need to know about where the profit is to be found.<\/p>\n\n\n\n In other words: never again will price-wary travelers be constrained by static, pre-filed fares. They \u2014 and consumers across all industries being reshaped by new technologies \u2014 will increasingly pay the price their data dictates. Nothing less, nothing more.<\/p>\n\n\n\n Well \u2014 maybe just a little more.<\/p>\n\n\n\n In this article, we review a dynamic pricing session provided to executives during a February 2020 SVIC Leading Digital Transformation (LDT) program. Taking the form of meetings and workshops with top Silicon Valley companies, the program is a journey of inspiration and learning. Apart from providing participants with personal connections to standout figures in the field of innovation, it teaches them how to achieve business growth in times of disruptive technological change.<\/em><\/p>\n\n\n\n Click here to see forthcoming program dates.<\/em><\/a><\/p>\n","post_title":"Know Thy Customer: How Big Tech Drives Profits with Data and Dynamic Pricing","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"know-thy-customer-how-big-tech-drives-profits-with-data-and-dynamic-pricing","to_ping":"","pinged":"","post_modified":"2020-03-24 11:13:49","post_modified_gmt":"2020-03-24 18:13:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/siliconvalley.center\/?p=6301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_5"};
A traditional business practices price discrimination in traditional ways: sales, volume discounts, and loyalty programs (to name a few) are all ways to capture a broader customer base across multiple price points. A company like Groupon<\/a>, which launched in 2008 as a \u201cgroup coupon\u201d platform, exemplifies this approach. By letting local businesses post discounts that would apply only if enough people bought in \u2014 a volume discount leveraged by the collective bargaining power of strangers \u2014 Groupon was one of the first companies to recognize technology\u2019s potential for variable pricing. Today, the company goes far beyond group coupons: among other offerings, they use advanced AI to \u201cpower supply-demand matching\u201d<\/a> on an individual level.<\/p>\n\n\n\n Which brings us to:<\/p>\n\n\n\n Dynamic pricing, which means constantly adjusting prices based on various factors, is not a new concept. The airline industry is infamous for shifting ticket prices up and down, seemingly at random, in the months leading up to a given flight. Or take a more modern example, the ride-hailing platform Uber<\/a>, which adjusts the cost of trips based on current demand using a system called surge pricing. Uber has denied rumours that they also charge more when your phone\u2019s battery is low, but they do know<\/em> when your battery is low<\/a>, and they do know<\/em> it affects your willingness to pay.<\/p>\n\n\n\n And Uber is not the only company that knows more about you than you think<\/a>. The incredible proliferation of smartphones over the past decade, combined with leaps in AI and machine learning technology, has led to a world of endless \u2014 and endlessly useful \u2014 customer data. A typical smartphone app might keep track of not just your battery level but your precise location, contacts, connections, physical motions, device model, and much more. All this information can be used to profile you and, well, is there a nice way to say \u201cgouge you for all you\u2019re worth?\u201d<\/p>\n\n\n\n Let\u2019s take a closer look at the airline industry, where new tech is reshaping old habits. The California-based startup FLYR<\/a>, founded in 2013, runs a continuous dynamic pricing platform for airlines. When a consumer searches for a flight, FLYR\u2019s system factors all the information it can about the request (the sales channel, current market conditions, competitor prices, and more) and the individual (their user profile, customer segment, product interaction, what have you) to show them a personalized price designed to maximize revenue. This is all automatic, in real-time, and constantly getting better \u2014 thanks to the ever-growing data set being run through ever-improving algorithms. The company boasts its customers will \u201cnever be constrained by static, pre-filed fares again.\u201d<\/p>\n\n\n\n The punchline is that FLYR\u2019s price determination technology first took flight as a fare protection service for consumers<\/a>. Travelers could pay a small, dynamically-determined fee to lock in the price of an airline ticket before committing to a purchase; then, if the ticket price was higher when they decided to buy, FLYR would refund them the difference. That FLYR has pivoted exclusively to dynamic pricing for airlines tells you all you need to know about where the profit is to be found.<\/p>\n\n\n\n In other words: never again will price-wary travelers be constrained by static, pre-filed fares. They \u2014 and consumers across all industries being reshaped by new technologies \u2014 will increasingly pay the price their data dictates. Nothing less, nothing more.<\/p>\n\n\n\n Well \u2014 maybe just a little more.<\/p>\n\n\n\n In this article, we review a dynamic pricing session provided to executives during a February 2020 SVIC Leading Digital Transformation (LDT) program. Taking the form of meetings and workshops with top Silicon Valley companies, the program is a journey of inspiration and learning. Apart from providing participants with personal connections to standout figures in the field of innovation, it teaches them how to achieve business growth in times of disruptive technological change.<\/em><\/p>\n\n\n\n Click here to see forthcoming program dates.<\/em><\/a><\/p>\n","post_title":"Know Thy Customer: How Big Tech Drives Profits with Data and Dynamic Pricing","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"know-thy-customer-how-big-tech-drives-profits-with-data-and-dynamic-pricing","to_ping":"","pinged":"","post_modified":"2020-03-24 11:13:49","post_modified_gmt":"2020-03-24 18:13:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/siliconvalley.center\/?p=6301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_5"};
But optimizing these profit factors is no easy feat, especially when it comes to pricing. What one customer is willing to pay might be very different from another, and so a business must make some sacrifice to sell to them both at the same price (that is to say, one of those customers would have happily paid more). As before, this disparity between customers\u2019 ideal price points is a burden shared by all industries. But in addressing this burden, those lean software startups \u2014 who have direct, personal, and unprecedented access to their customers \u2014 may have a leg up.<\/p>\n\n\n\n A traditional business practices price discrimination in traditional ways: sales, volume discounts, and loyalty programs (to name a few) are all ways to capture a broader customer base across multiple price points. A company like Groupon<\/a>, which launched in 2008 as a \u201cgroup coupon\u201d platform, exemplifies this approach. By letting local businesses post discounts that would apply only if enough people bought in \u2014 a volume discount leveraged by the collective bargaining power of strangers \u2014 Groupon was one of the first companies to recognize technology\u2019s potential for variable pricing. Today, the company goes far beyond group coupons: among other offerings, they use advanced AI to \u201cpower supply-demand matching\u201d<\/a> on an individual level.<\/p>\n\n\n\n Which brings us to:<\/p>\n\n\n\n Dynamic pricing, which means constantly adjusting prices based on various factors, is not a new concept. The airline industry is infamous for shifting ticket prices up and down, seemingly at random, in the months leading up to a given flight. Or take a more modern example, the ride-hailing platform Uber<\/a>, which adjusts the cost of trips based on current demand using a system called surge pricing. Uber has denied rumours that they also charge more when your phone\u2019s battery is low, but they do know<\/em> when your battery is low<\/a>, and they do know<\/em> it affects your willingness to pay.<\/p>\n\n\n\n And Uber is not the only company that knows more about you than you think<\/a>. The incredible proliferation of smartphones over the past decade, combined with leaps in AI and machine learning technology, has led to a world of endless \u2014 and endlessly useful \u2014 customer data. A typical smartphone app might keep track of not just your battery level but your precise location, contacts, connections, physical motions, device model, and much more. All this information can be used to profile you and, well, is there a nice way to say \u201cgouge you for all you\u2019re worth?\u201d<\/p>\n\n\n\n Let\u2019s take a closer look at the airline industry, where new tech is reshaping old habits. The California-based startup FLYR<\/a>, founded in 2013, runs a continuous dynamic pricing platform for airlines. When a consumer searches for a flight, FLYR\u2019s system factors all the information it can about the request (the sales channel, current market conditions, competitor prices, and more) and the individual (their user profile, customer segment, product interaction, what have you) to show them a personalized price designed to maximize revenue. This is all automatic, in real-time, and constantly getting better \u2014 thanks to the ever-growing data set being run through ever-improving algorithms. The company boasts its customers will \u201cnever be constrained by static, pre-filed fares again.\u201d<\/p>\n\n\n\n The punchline is that FLYR\u2019s price determination technology first took flight as a fare protection service for consumers<\/a>. Travelers could pay a small, dynamically-determined fee to lock in the price of an airline ticket before committing to a purchase; then, if the ticket price was higher when they decided to buy, FLYR would refund them the difference. That FLYR has pivoted exclusively to dynamic pricing for airlines tells you all you need to know about where the profit is to be found.<\/p>\n\n\n\n In other words: never again will price-wary travelers be constrained by static, pre-filed fares. They \u2014 and consumers across all industries being reshaped by new technologies \u2014 will increasingly pay the price their data dictates. Nothing less, nothing more.<\/p>\n\n\n\n Well \u2014 maybe just a little more.<\/p>\n\n\n\n In this article, we review a dynamic pricing session provided to executives during a February 2020 SVIC Leading Digital Transformation (LDT) program. Taking the form of meetings and workshops with top Silicon Valley companies, the program is a journey of inspiration and learning. Apart from providing participants with personal connections to standout figures in the field of innovation, it teaches them how to achieve business growth in times of disruptive technological change.<\/em><\/p>\n\n\n\n Click here to see forthcoming program dates.<\/em><\/a><\/p>\n","post_title":"Know Thy Customer: How Big Tech Drives Profits with Data and Dynamic Pricing","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"know-thy-customer-how-big-tech-drives-profits-with-data-and-dynamic-pricing","to_ping":"","pinged":"","post_modified":"2020-03-24 11:13:49","post_modified_gmt":"2020-03-24 18:13:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/siliconvalley.center\/?p=6301","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"prev":false,"total_page":1},"paged":1,"column_class":"jeg_col_2o3","class":"epic_block_5"};
The factors that determine profit are the same across every industry, from the biggest retail giant to the leanest software startup: production costs, product differentiation, competition, the timeless dance of supply and demand. Not least among these levers of profitability is pricing. By tweaking the variables in creative ways \u2014 cutting costs here, acquiring a competitor there \u2014 a company strives to max out its bottom line.<\/p>\n\n\n\n But optimizing these profit factors is no easy feat, especially when it comes to pricing. What one customer is willing to pay might be very different from another, and so a business must make some sacrifice to sell to them both at the same price (that is to say, one of those customers would have happily paid more). As before, this disparity between customers\u2019 ideal price points is a burden shared by all industries. But in addressing this burden, those lean software startups \u2014 who have direct, personal, and unprecedented access to their customers \u2014 may have a leg up.<\/p>\n\n\n\n A traditional business practices price discrimination in traditional ways: sales, volume discounts, and loyalty programs (to name a few) are all ways to capture a broader customer base across multiple price points. A company like Groupon<\/a>, which launched in 2008 as a \u201cgroup coupon\u201d platform, exemplifies this approach. By letting local businesses post discounts that would apply only if enough people bought in \u2014 a volume discount leveraged by the collective bargaining power of strangers \u2014 Groupon was one of the first companies to recognize technology\u2019s potential for variable pricing. Today, the company goes far beyond group coupons: among other offerings, they use advanced AI to \u201cpower supply-demand matching\u201d<\/a> on an individual level.<\/p>\n\n\n\n Which brings us to:<\/p>\n\n\n\n Dynamic pricing, which means constantly adjusting prices based on various factors, is not a new concept. The airline industry is infamous for shifting ticket prices up and down, seemingly at random, in the months leading up to a given flight. Or take a more modern example, the ride-hailing platform Uber<\/a>, which adjusts the cost of trips based on current demand using a system called surge pricing. Uber has denied rumours that they also charge more when your phone\u2019s battery is low, but they do know<\/em> when your battery is low<\/a>, and they do know<\/em> it affects your willingness to pay.<\/p>\n\n\n\n And Uber is not the only company that knows more about you than you think<\/a>. The incredible proliferation of smartphones over the past decade, combined with leaps in AI and machine learning technology, has led to a world of endless \u2014 and endlessly useful \u2014 customer data. A typical smartphone app might keep track of not just your battery level but your precise location, contacts, connections, physical motions, device model, and much more. All this information can be used to profile you and, well, is there a nice way to say \u201cgouge you for all you\u2019re worth?\u201d<\/p>\n\n\n\n Let\u2019s take a closer look at the airline industry, where new tech is reshaping old habits. The California-based startup FLYR<\/a>, founded in 2013, runs a continuous dynamic pricing platform for airlines. When a consumer searches for a flight, FLYR\u2019s system factors all the information it can about the request (the sales channel, current market conditions, competitor prices, and more) and the individual (their user profile, customer segment, product interaction, what have you) to show them a personalized price designed to maximize revenue. This is all automatic, in real-time, and constantly getting better \u2014 thanks to the ever-growing data set being run through ever-improving algorithms. The company boasts its customers will \u201cnever be constrained by static, pre-filed fares again.\u201d<\/p>\n\n\n\n
\n
Latest
\n\n\n\n
\n
Latest
Dynamic Pricing Key Concepts And Takeaways<\/h2>\n\n\n\n
\n\n\n\n
\n
Latest
\n\n\n\nDynamic Pricing Key Concepts And Takeaways<\/h2>\n\n\n\n
\n\n\n\n
\n
Latest
\n\n\n\nDynamic Pricing Key Concepts And Takeaways<\/h2>\n\n\n\n
\n\n\n\n
\n
Latest
\n\n\n\nDynamic Pricing Key Concepts And Takeaways<\/h2>\n\n\n\n
\n\n\n\n
\n
Latest
\n\n\n\nDynamic Pricing Key Concepts And Takeaways<\/h2>\n\n\n\n
\n\n\n\n
\n
Latest
\n\n\n\nDynamic Pricing Key Concepts And Takeaways<\/h2>\n\n\n\n
\n\n\n\n
\n
Latest
\n\n\n\nDynamic Pricing Key Concepts And Takeaways<\/h2>\n\n\n\n
\n\n\n\n
\n
Latest
\n\n\n\nDynamic Pricing Key Concepts And Takeaways<\/h2>\n\n\n\n
\n\n\n\n
\n
Latest
Using data to price dynamically<\/h2>\n\n\n\n
\n\n\n\nDynamic Pricing Key Concepts And Takeaways<\/h2>\n\n\n\n
\n\n\n\n
\n
Latest
Using data to price dynamically<\/h2>\n\n\n\n
\n\n\n\nDynamic Pricing Key Concepts And Takeaways<\/h2>\n\n\n\n
\n\n\n\n
\n
Latest
Using data to price dynamically<\/h2>\n\n\n\n
\n\n\n\nDynamic Pricing Key Concepts And Takeaways<\/h2>\n\n\n\n
\n\n\n\n
\n
Latest
Using data to price dynamically<\/h2>\n\n\n\n
\n\n\n\nDynamic Pricing Key Concepts And Takeaways<\/h2>\n\n\n\n
\n\n\n\n
\n
Latest
Using data to price dynamically<\/h2>\n\n\n\n
