B2B marketing has enhanced businesses capabilities on the global scale through more personalized and responsive tactics. Now, we can see the emergence of AI in B2B pricing methodologies in order to enhance the user experience and follow in the footsteps of recent B2B marketing success. About 5 to 10 years ago, B2B marketing lacked any sort of data intelligence and predictive analytical insight into customers; essentially, it was stagnant. However, now B2B marketing has exponentially grown by targeting businesses across numerous industries and geographies through investments in technology and data analytics. For example, medical marketing has seen a huge upsurge as a result of more responsive and customer-centric marketing strategies.
Global B2B markets should incorporate enterprise level AI developments for dynamic pricing, better product configurations, and more intelligent business negotiations. As a result of modern technological innovations, businesses are now able to use such advancements to better improve and automate various areas of their business models. AI technology is spreading across all industry segments, and will continue to do so for the long term future; results shown below are from a 2019 research study conducted by PWC.
CEOs experience two main challenges in B2B pricing. First, incorrect pricing leads to lost sale opportunities as customers take their business to competitors who offer more dynamic pricing models. In order to change this and increase revenues, CEOs need to alter their pricing strategies to become more responsive to real-time data and insights offered by AI technology. Second, often C-Suite executives get trapped in ad hoc projects and reviews that deter them from focusing on the firm’s main strategies and goals in mind. Through investments in automation, executive leadership will be able to rely more heavily on continuous improvement programs, which in turn will leave more time available for important, face-to-face strategic decision-making that cannot be completed through machine learning.
It is vital that B2B market players engage in AI in order to stay agile and relevant across the global marketplace. As we enter this digital era, organizations experience shifting market dynamics, increased competitive rivalry, and rising demands from B2B customers. A 2019 Gartner report concluded that approximately 77% of B2B buyers experience difficult or complex purchases; therefore, B2B sellers must alter this process to become more user friendly. Traditional pricing methods limit customer intelligence and business negotiations, so businesses that are late to adopt such advanced analytics into their pricing models, will lose to their competition who offer much more advanced user experiences. Adjustments to the B2B selling platform must be centered around 4 fundamental pillars, which are as follows.
AI pricing solutions benefit both parties in B2B transactions. The sellers increase their profit margins, while the customers receive accurate pricing even in complex situations where there are multiple product lines and/or mixes. Consequently, business transitions and negotiations become much quicker and time-efficient, leaving both parties pleased with the deal outcome. AI -powered pricing strategies have opened up a new door for sustainable long-term growth and profitability and are here to stay.