How AI helps Black Friday Deals

Black Friday Deals is a very tempting term absorbing theattention of many viewers everywhere, on social media, on billboards, on TVcommercials and so on. Loyal customers of some giant chain supermarkets mighteven be so impatient for the arrival of Black Friday days, so that they canenjoy the price cuts to fit their budget. This is not just about the customers,by the way, and there is surely one other side involved: the sellers!

To start, let’s see what the CEO of the biggest Americanretailer, Walmart, is expressing about the potential of AI :

Firstly, I must admit that you must sit back relaxed as suchnotions are not a threat, but an alarm. It means that you must acquire theskills required to be accompanied by AI to amplify your capabilities.

But I am to focus on a different perspective. You probablyunderstood AI is being recruited by many business owners worldwide as it has arange of applications in different areas requiring more attention in any business.One of those areas is pricing.

What is price sensitivity?

And now, we are clear how interconnected the price is withthe demand by the potential customers. So the best way is to enjoy a decent pricingstrategy to acquire an increasing market share by providing customers with themost affordable prices.

To prepare for every shift in the market including changesin customers’ taste, their shopping habits, any unforeseen shortage of servicesand products, etc, there must be dynamic strategies to immediately respond tothe change. One of the most well-known market requirements is the ability torespond to the competitors' behavior, and one famous occasion is their activityin Black Friday Deals.

After all — imagine you run a supermarket chain with somestores in city centers and others in residential areas. You can’t expectemployees to nip out, check competitor prices, review each store’s saleshistory, then recalculate the price of every product (and you definitely can’texpect them to factor in aspects like store location, weather, and the time ofthe day). But you can expect software to do this, which is why thousands ofretailers worldwide rely on artificial intelligence to automate priceoptimization.

AI helps retailers optimize their discounting strategies tomaximize sales and minimize waste. Key applications include:

Dynamic Pricing: AI algorithms analyze vast datasets,including competitor prices, seasonal trends, and real-time demand, to setoptimal prices that can change instantly, ensuring they remain competitive andattractive to shoppers.

Personalized Promotions: AI analyzes individualshopping behaviors, preferences, and purchase history to offer"hyper-personalized offers" and product recommendations, makingcustomers feel valued and increasing the likelihood of a purchase.

Inventory ManagementOptimisation: Predictive analytics helps retailers accuratelyforecast demand for products, reducing the risk of stockouts and minimizingsurplus inventory that might otherwise require steep markdowns or go to waste.

TargetedMarketing: AI segments customers into specific groups based onbehavior and demographics, allowing for highly effective, targeted marketingcampaigns and promotions via email, social media, or in-app notifications.

WasteMinimization: In the grocery sector, AI can identify perishablegoods nearing expiration and recommend timely discounts to sell them beforethey spoil, helping reduce waste.

It is surely needed to use a combination of these tools toenhance the pricing specifically when all the market participants are carefullyapplying them, cases like Black Friday Deals. I will be so happy to implementand analyse AI engines in your business, so do not hesitate to contact.