Barrett Thompson is a firm believer that applied advanced math and data science can significantly improve customer lifetime value. For more than 25 years, he has helped Fortune 500 companies improve profitability and grow revenues by delivering science-based, optimized decision models. He has found that relying on the accuracy and objectivity of predictive models to guide daily decisions, rather than more subjective methods, yields superior financial results for B2B companies.

In this episode, Barrett shares AI's role in pricing, how it enhances pricing strategies, identifies trends, and improves pricing decisions. He also highlights the value of understanding customer-specific needs and using data to create more tailored and effective pricing models.

Why you have to check out today’s podcast:

• Deep dive into how AI, particularly tools like ChatGPT, can revolutionize pricing strategies, making it more efficient, transparent, and data-driven.
• Gain valuable advice on how B2B companies can simplify and modernize their pricing processes, avoiding the pitfalls of outdated methods when adopting new pricing systems.
• Have a clear understanding of how to effectively implement purpose-built pricing tools to enhance profitability and competitiveness.

"If they undertake an automation of their pricing process into these modern purpose-built pricing tools, they should look very closely and critically at how to simplify their pricing process as they put that onto a superior platform." 

- Barrett Thompson 

Topics Covered:

01:14 - Touching a bit on the topic of the Boy Scouts program and how it is a valuable tool for character development and citizenship

01:51 - How he found a path into pricing

03:26 - Discussing the qualitative and not just the quantitative aspect to pricing

05:17 - How automated pricing systems can balance efficiency and personalization

09:14 - Explaining how AI holds great potential in generating "smart prices"

11:36 - Reflecting on the rise of generative AI and how AI in general has already influenced pricing systems

13:50 - Exploring the potential of generative AI to enhance negotiation and communication in B2B sales

15:35 - Discussing how understanding a customer's specific use case or application can directly influence pricing decisions

16:33 - Talking about how understanding a customer's specific use case or application can directly influence pricing decisions

17:57 - Highlighting how AI, like ChatGPT, can enhance tools used by pricing professionals by streamlining the process of analyzing pricing data

20:41 - Addressing the "black box" problem in pricing systems and expanding on the idea of using AI to explain its own decisions

24:14 - The importance of deepening the understanding of customer needs, particularly as the push for touchless and self-service channels grows

28:43 - Barrett's best pricing advice

Key Takeaways:

"An important part of setting up any price guidance, price recommendation or price automation system is to ensure that you've identified the factors that were really important in driving price outcomes in the market." - Barrett Thompson 

"Pricing becomes a consequence of having agreed on the value and why it matters." - Barrett Thompson 

"We gather data to enrich the relationship and define places to add more value to the customer. Yes, the seller should be compensated for fair value, but not to be exploitative." - Barrett Thompson 

People/Resources Mentioned:

• ChatGPT: https://chatgpt.com

Connect with Barret Thompson:

• LinkedIn: https://www.linkedin.com/in/barrettthompson/

Connect with Mark Stiving:

• LinkedIn: https://www.linkedin.com/in/stiving/
• Email: mark@impactpricing.com