SUNNYVALE, Calif.--(BUSINESS WIRE)--Boomerang Commerce, the leading provider of dynamic price optimization technology, today announced the launch of its A/B Testing Platform for retail pricing. The platform enables retailers to rapidly test various pricing strategies and optimize prices for revenues, profits and the Price Perception Index (PPI™). Retailers can use the platform to optimize prices across channels at varying frequencies – while pure-play ecommerce retailers can test prices dynamically in real-time, click and mortar retailers can run tests with smaller frequencies.
Traditional retail price testing takes months to implement and often is oblivious to market elasticity of demand. In comparison, Boomerang Commerce’s A/B Testing Platform uses modern “explore and exploit” methods to account for both internal and market elasticity of demand thereby enabling retailers to continuously optimize prices in a fast changing competitive environment.
A/B testing is a best practice commonly used to conduct experience testing in marketing to make data-driven decisions before implementing new strategies. However, traditional tools break down when it comes to testing pricing strategies, because showing different prices to random sets of users may not always be an option. Using Boomerang Commerce’s A/B testing platform, a retailer can test various pricing strategies and algorithms and by measuring the performance of each strategy, the retailer can determine which one maximizes revenues and profits.
The price-testing platform has been in beta so far, and has already helped Boomerang’s customers drive revenue and profits over millions of SKUs. The platform has also helped them improve price perception from the customer’s viewpoint, which is measured by the Price Perception Index (PPITM). By tracking PPI improvements, retailers can ensure that as they become more competitive, such improvements are apparent to the customers on the products they care about the most.
Boomerang Commerce’s CEO, Guru Hariharan, said “Merchandizers and pricing analysts at click and mortar retailers have had to wait months to draw conclusive results from price tests. In the digital world, you don’t have that kind of luxury. You need to make decisions quickly – often with limited data. This is why we believe that facilitating rapid testing of pricing strategies will help them figure out a way to set the right prices for their products in a timely manner.”
Hariharan added, “Our customers now spend 80% of their time where they should - on price modeling and testing, as opposed to fighting operational and reporting challenges in price tests. With this release, Boomerang Commerce has democratized price testing – a technology that was available only with the most advanced retailers in the world.”
The A/B Testing platform is available immediately to Boomerang Commerce’ customers as part of their service subscription.
About Boomerang Commerce
Boomerang Commerce is the leading provider of dynamic price optimization technology, already in use by the largest online commerce companies in the world. Led by veterans from Amazon, eBay, Adobe and McKinsey Boomerang leverages complex optimization methods, machine learning, and real-time data analytics to driving dynamic pricing based on business rules and strategies. The company is funded by Madrona Venture Group and Trinity Ventures. www.boomerangcommerce.com