Might be time for finance chiefs to enroll in some price sensitivity training. Price sensitivity among consumers is on the rise across industries: 57% of CFOs reported an increase in consumer price sensitivity in their sector, according to a February Grant Thornton survey of more than 230 finance leaders across industries. Still, a large majority (84%) of the CFOs reported passing “some cost increases” to customers in the course of the last year. Companies are feeling the squeeze, too. Nearly six in 10 CFOs said they had to restructure “cost and operational efficiency practices” within the last year as a result of inflation. In response to affordability and pricing pressures, advanced pricing models—including those using AI—“are increasingly being used to balance customer sensitivity with profitability, including segmented pricing for different customer groups and dynamic pricing based on demand or inventory,” the survey’s authors noted. “While 16% of organizations have fully implemented these approaches, another 35% are rolling them out more broadly across the business.” Keep reading.—NP |