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About the role of AI in a recession (part 2)

By 12. September 2019Dastani Consulting
Rezessionen sicher überwinden | Über die herausragende Rolle von KI

In the first part of our article you could read to what extent AI methods – from a strategic point of view – can be helpful in a recessive phase in order to realize opportunities for market share gains. In the second part of this article, we will focus on the operational aspects of sales and marketing and conclude with a comprehensive conclusion. 

AI in operational sales
Inbound contacts, where customers can place their orders, can be used for active cross-selling. This is exactly where the AI plays a special role, because it can show the agent or the internal sales representative which products should be sold to the individual customer. In particular, AI can signal which customer has never bought in a particular product area, but would have to do so in terms of his business area.

AI also plays an important role in scheduling and warehousing. As far as this is concerned, AI is able to determine how many products must be in stock in order to have an optimal stock by constantly forecasting the demand per article. This ensures that, on the one hand, orders can be executed and, on the other hand, no expensive financed overhangs arise.

Last but not least, the AI is also of great importance for pricing in order to determine the optimal price in terms of the company’s contribution margin optimization. The price elasticity is forecast and leads to an optimal price choice.

AI components help top management to deal with all these issues in order to overcome the negative environment of a recessive phase. There is no more fruitful phase than the recession to tackle things – such as the right sales strategy – in order to ultimately be able to act professionally in the market.

Particularly in a poor economic environment, it is precisely these measures that determine a company’s market share and future viability.

Just tightening the price screw? That doesn’t help: quite the contrary – exactly that will weaken a company. If the price is reduced, lower contribution margins and staff reductions can also be expected as a result. The scenario would be too short and only the beginning of a downward spiral.

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