Jan 31, 2022
Damien Robert is currently the Chief Solution and Delivery Officer at Pricemoov. He's been at Simon-Kucher & Partners (SKP) for 17 years of his career so he actually understands pricing really well. Damien also took a three-year stint at Disneyland Resorts Paris. Damien develops and implements tailor-made pricing solutions, ensuring easy price steering across the organization.
In this episode, Damien talks about Machine Learning and how it helps optimize inputs in the pricing work as he shares insights in relation to Pricemoov’s models.
Why you have to check out today’s podcast:
- Find out what Machine Learning (ML) and Artificial Intelligence (AI) are all about and how these two are used in pricing
- Discover simple and advanced pricing strategies you can implement to reach a bigger market
- Understand why looking at price in the perspective of your client is a good move towards success
“Look at your prices with the client view.”
– Damien Robert
Topics Covered:
01:32 – How Damien got into pricing
02:34 – What does pricing mean for Damien
04:28 – Damien’s pricing story when he was still in Disneyland
06:25 – What makes Pricemoov different in the pricing market and how Damien got involved with them
08:50 – Simple and advanced pricing strategies people can implement
10:57 – Collecting competitive pricing information with car rental companies
13:00 – Defining Machine Learning (ML) and Artificial Intelligence (AI) alongside the things they do
16:45 – Using ML to forecast the effects of the decisions made for pricing
19:54 – Mark’s Amazon story: his $20 book reaching a price $225 in Amazon
22:00 – Damien working in a theme park, the existence of black box
24:57 – The things Pricemoov considers when making pricing models
27:00 – Damien’s pricing advice for today’s listeners
Key Takeaways:
“Pricing is not only a price, but also the way you message it and what you can achieve.” – Damien Robert
“Our software is allowing you to configure the rules that we provide. So, you have a set of rules, you, yourself, decide which one you want to use and implement for your product portfolio, because you may want to use one or another one, and we can basically train you on which one you want to use.” – Damien Robert
“That's what people misunderstand. Sometimes in machine learning and artificial intelligence, they think that the model by itself can be smart. The reality is that the model is not smart, but the model can be much more granular and fit much more kind of situations because his granularity and the computer allows, basically, to have so many computations and so many different alternatives.” – Damien Robert
“Somehow, machine learning can be used to optimize part of the dimension, some of the inputs, but basically, at the end of the day, you need a skeleton of decision making, which is important to have. Otherwise, you do not take the long-term impact of price changes. You do not take the potential competition reaction. So, you're missing a lot of the points.” – Damien Robert
“Very frequently, you just optimize, set a price, but you do not check the consistency, you do not realize some of the price points, and you won't even realize that the way your prices are featured on the web is sometimes a catastrophe. So really, just look at the end of the tunnel and look at it because you will have a lot of surprise, especially on promotion. 50% of promotional faders are usually related to execution. It's not at all related to the design of the promotion itself.” – Damien Robert
People / Resources Mentioned:
- Pricemoov: https://pricemoov.com/
- Simon-Kucher & Partners: https://www.simon-kucher.com
- Tesla: https://www.tesla.com/
Connect with Damien Robert:
- LinkedIn: https://www.linkedin.com/in/damienrobertpricemoov/#
- Email: robert@pricemoov.com
Connect with Mark Stiving:
- LinkedIn: https://www.linkedin.com/in/stiving/
- Email: mark@impactpricing.com