Artificial Intelligence is permeating every aspect of modern life. From online shopping to autocorrect, we use AI every single day without even noticing it. But how could agencies benefit from using a tool that prices up services far quicker than clients or employees ever could?
The introduction of AI should enable agencies to drastically change the way they price their services. If you’re an agency that bills by the hour, then AI is a threat to you. Mat Baxter, Global CEO at Huge, mentions that if you’re an agency and you sell 100 hours today, you might only be able to sell 80 hours tomorrow, because AI removes 20 hours of those from the process.
The introduction of AI to this process means computers can do the work a client would typically pay for. So how you price up such services today and in the future is paramount. Pricing manually today in Excel or other spreadsheets would not allow you to make better decisions. A Scoping tool should be used to analyze all scopes created manually in today’s world. By digitally transforming the process agencies will have the opportunity to improve and learn.
With the help of AI, agencies can gain a competitive edge and make informed pricing decisions. Agencies that opt to invest in AI resources could easily optimise their pricing strategies by utilizing this to replace the people they bill for.
Personalisation & Dynamic Pricing
AI allows agencies to personalise pricing based on customer preferences, boosting customer experience and satisfaction. Dynamic pricing, influenced by real-time factors like demand and competition, enables agile and flexible pricing models.
Competitive Advantage
AI-powered competitor analysis equips agencies with valuable insights. By benchmarking against rivals, agencies can identify pricing gaps, seize opportunities, and strategically position themselves in the market.
Predictive Analytics for Success
AI’s predictive analytics capabilities empower agencies to forecast market dynamics and optimise pricing strategies. Accurate predictions based on historical data and market trends enable proactive pricing decisions.
Data-Driven Power
AI enables agencies to leverage data for optimal pricing decisions. By analyzing vast amounts of data, agencies gain insights into market trends, customer behaviour, and pricing structures, ensuring informed pricing strategies.
Efficient Resource Allocation
AI assists agencies in optimising resource allocation and pricing accuracy. By analyzing project data, agencies can determine efficient staffing, time allocation, and project scope, avoiding under or over-pricing.
Elevating Value Proposition
AI-powered pricing strategies enable agencies to offer innovative models aligned with client success. Performance-based and outcome-driven pricing fosters stronger partnerships and incentivizes mutual growth.
Avoiding Profitability Leakage
Humans see in shades of grey and are influenced by the subtleties of human connection and emotion. Although these are valuable traits to have within a team, agencies could eliminate inconsistencies within their business by using a CPQ tool to ensure that they retain all possible profit. By eliminating human discrepancies in pricing and quoting, You can ensure that agencies maintain a consistent standard of quoting.
Final thoughts
With the help of AI and digital transformation, agencies can make informed decisions, adapt to changing market dynamics, and shape the future of pricing strategies in the agency world. For agencies to stay ahead of the competition, it is essential to become a part of this Process revolution and embrace the advantages that AI offers.
By leveraging data all professional services businesses can power impressive success and enhanced analysis and capabilities. Flexible pricing models, along with innovative pricing strategies that are aligned with client success will foster stronger partnerships and increase profit margins. The AI revolution is here – embrace it and the process to thrive.
