PRICING 💕 DECISION INTELLIGENCE
This makes it an ideal use case for taking a decision intelligence approach. It has a clear action (determine price) it’s dependent on both internal and external factors (like costs or market demand) and has tangible outcomes (like sales volumes and profit margins).
Because these factors can change quickly and dramatically, coming up with effective pricing strategies requires the exploration of multiple scenarios;
🔮 What if fuel prices go up?
🔮 What if the weather's bad?
🔮 What if our competitors undercut us?
All of these factors can - and should - be modelled within a decision support application. These models could be rendered as complex tables of options, but for speed and intuitiveness, you can't beat a good ol' fashioned slider.
SIMPLE SCENARIOS WITH SLIDERS
Sliders are interactive components that allow users to adjust a parameter within a specified range by dragging a handle along a bar. They are commonly used to adjust date ranges or the granularity of data and are a fantastic short cut to 'What-If' scenarios - particularly when paired with a visual representation of likely outcomes. This pairing of input assumptions and output simulation removes the complexity from models and allows people to get an instant feel for the 'economic physics' at play.
EXAMPLE - REVENUE MANAGEMENT
In this application - a revenue management tool for pricing analysts in the transport industry - sliders are used to set thresholds for the number of tickets to be released at various price points. Based on the underlying model, the results of these micro-decisions are aggregated up to give a view of expected ticket sales leading up to departure.