Impact Pricing Navigating Retail Pricing: Walmart's Pricing Strategy Explored with Rishi Bhatia
Rishi Bhatia is an experienced analytics consultant, data expert and market research professional with domain expertise in retail, technology, telecom, apparel, manufacturing, and insurance domain.
In this episode, Rishi shares about Walmart's lower pricing strategy. He emphasizes the importance of prioritizing the customer when determining pricing strategies. He also highlights the significance of leveraging data and analytics to inform pricing decisions. And also the importance of adopting AI-driven models to streamline operations and remain competitive in the market.
Why you have to check out today’s podcast:
- Learn how Walmart maximizes profitability while maintaining its everyday low prices
- Discover how AI revolutionizes the retail industry by enabling retailers to make informed pricing decisions, rather than just providing pricing insights
- Explore the impact of retail pricing on customer loyalty and retention
"Put your customer first. Rather than going for the traditional route, learn from the data as much as you can. And then, improve your models constantly based on how can you get the prices right."
- Rishi Bhatia
Topics Covered:
01:01 - How he found himself in pricing
02:46 - Why everyday low price policy for Walmart and how do they maximize revenue with this strategy
03:46 - Pricing and how it affects loyalty and retention
05:18 - What makes Walmart's margins high other than lower prices
06:48 - How AI in pricing optimization has evolved from basic insights generation to sophisticated model-driven recommendations
08:41 - Is AI a blackbox and how the process works in achieving pricing decision
11:31 - Walmart's primary focus regarding pricing decisions and how AI ensures timely transitions between product cycles and maintaining profitability
13:47 - How algorithms and recommendations ensures consistency and optimization across the retail chain
14:44 - Discussion around Wendy's dynamic pricing
19:49 - Rishi's response to Mark's advice for retailers and also talking about Walmart Plus
21:15 - Rishi's best pricing advice
23:12 - How do you measure value in retail products
Key Takeaways:
"Value pricing, what does your customer want, at what price your customer will be more loyal to you and what will they... because pricing is one component that everyone wants low price." - Rishi Bhatia
"When you're putting the product, rather than going for the traditional route, learn from the data as much as you can and improve your models constantly based on that, how can you get the prices right." - Rishi Bhatia
"If you're able to improve on that and the customer, your overall complaints are also going down. And that is one value you can measure from that perspective as well. It's not always in the monetary term, it's always on the customer satisfaction side as well." - Rishi Bhatia
People/ Resources Mentioned:
- Walmart: https://www.walmart.com
- Uber: https://www.uber.com
Connect with Rishi Bhatia:
Connect with Mark Stiving:
- LinkedIn: https://www.linkedin.com/in/stiving/
- Email: mark@impactpricing.com