On a recent visit to Barcelona, I sat down with Marco Bertini, one of the world’s foremost experts on dynamic pricing. Bertini is a professor of marketing at Esade University and the author of the book, ‘The Ends Game: How Smart Companies Stop Selling Products and Start Delivering Value,’ which examines how technology and society stimulate accountability, prompting companies to profit from the outcomes they deliver rather than the offerings they bring to market.

We spoke about the origins of fixed pricing, the impact of AI on dynamic pricing, and the psychological aspects of consumer behavior related to pricing decisions. Bertini shared his insights on how companies can leverage pricing as a mechanism to create value for both businesses and consumers, emphasizing the importance of transparency and ethical practices in the process.

Our discussion also touched upon the concept of access versus ownership, exploring how subscription-based models and outcome-based pricing are transforming various industries. Bertini spoke about the need for companies to focus on customer outcomes and to allocate risk to the party best equipped to handle it.

5 Key Insights:

1. Embrace dynamic pricing strategies that leverage technology to offer personalized prices based on individual consumer preferences and behaviors.

2. Focus on customer outcomes and align pricing models with the value delivered to consumers.

3. Be transparent in communicating pricing strategies to customers and frame them in a way that highlights the benefits for both parties.

4. Consider shifting from ownership-based to access-based models, such as subscriptions or usage-based pricing, to improve asset utilization and customer satisfaction.

5. Use pricing as a mechanism to facilitate mutually beneficial transactions, ensuring that both the company and the consumer derive value from the exchange.

I sat down with Pierre-Yves Calloc'h, Chief Digital Officer at Pernod Ricard, to discuss the company's journey in embracing AI, algorithms and automation to drive marketing effectiveness, sales performance, and consumer engagement. Pernod Ricard, known for its extensive portfolio of brands such as Absolut Vodka, Jameson, and Ballantine's, has been at the forefront of leveraging AI to make data-driven decisions and personalize consumer experiences.

Pierre-Yves shares insights into how AI has transformed various aspects of the business, from optimizing marketing investments and generating personalized content to empowering sales teams with tailored recommendations for each outlet. He emphasizes the importance of transparency, internal capability building, and the role of human judgment in challenging and interpreting AI-driven insights.

Looking ahead, Pierre-Yves envisions a future where AI will enable even greater personalization and adaptation to individual consumer preferences and moments. He highlights the potential for AI to enhance consumer experiences by ensuring that people find the right product at the right time, tailored to their specific desires and the social context of their consumption.

5 Key Insights:

1. Embrace AI and automation to drive marketing effectiveness, sales performance, and consumer engagement.

2. Foster a data-driven culture and empower teams to make decisions based on AI-generated insights while encouraging them to challenge and interpret the recommendations.

3. Invest in building internal AI capabilities to ensure transparency, cost-effectiveness, and alignment with business needs.

4. Prepare for a future where AI enables hyper-personalization and adaptation to individual consumer preferences and moments.

5. Ensure responsible and transparent use of AI, addressing consumer concerns and adhering to ethical guidelines.

I met Simon in the late nineties in Sydney when he had just started Australian Fashion Week. After the huge success of that event, he sold the business to IMG International, and went on to found Ordre, a business-to-business online wholesale marketplace for luxury designers, which has recently taken on Alibaba Group as a strategic investor. Catching up at his office in London, we had a fascinating chat about the use of AR/VR by global fashion buyers, the challenges of serving dynamic global consumer markets, the emergence of algorithmic fashion design and how AI will change the future of retail.

Martin Raymond is one of the world’s most respected consumer forecasters. He is the co-founder of The Future Laboratory, is editor-in-chief of Viewpoint magazine and LS:N Global, the online lifestyle news and consumer insight portal. Author of a number of books including ‘The Tomorrow People’ and ‘The Trend Forecaster’s Handbook’, he has a unique perspective on the skills required to anticipate consumer behavior. Visiting him in their London headquarters, and provisioned with a very English cup of tea, we spoke about the evolution of the ‘business of the future’, and how the algorithmic age is creating new challenges for understanding and building trust with customers.