The pricing tool brings artificial intelligence to assist salespeople
ISKU
ISKU is one of the most well-known furniture brands in Finland. Operating for nearly 100 years, this family-owned business sells furniture manufactured in Lahti to both consumers and businesses, as well as public entities.
The competition in the industry is fierce. Factors influencing the likelihood of a customer's purchase include the content of the offer, market conditions, purchasing history, location, and timing. The market is constantly evolving, and sellers engage in close discussions with each other to gain the most up-to-date understanding of consumer behavior.
The pricing tool provides data to support decision-making for sales representatives.
We developed a pricing tool for ISKU that uses machine learning to assess the likelihood of a proposed package becoming a sale. The model is trained based on completed transactions in a customer-centric manner, ensuring that pricing is based on the latest information.
"From the seller's perspective, the pricing tool is a great addition" says Anssi Turpeinen, Key Account Manager at ISKU
The tool serves as support but does not replace the expertise or responsibility of the seller. Excessively high prices lead to lost customer relationships, while excessively low prices erode profitability and the company's long-term competitiveness. The pricing tool helps maintain a balance.
High-quality data forms the basis of the pricing tool
The development of the pricing tool utilized Python's Scipy and statsmodels libraries. An essential part of the development was compiling high-quality data and regularly updating it.
"We really got close to the final solution with twoday already in the first iteration. Communication has been smooth, and we've been on the same wavelength," commented Lari Mäkinen, Pricing Manager at ISKU.