We offer retailers a Software as a Service to optimize their dynamic pricing. Our solution uses advanced machine learning models to forecast demand for different price points with high accuracy. We offer the most intuitive way to steer prices. Our prices simply maximize the business goals set by our clients.
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Increased profits for retailers with machine learning: Pricing Startup 7Learnings closes financing round
- 7Learnings offers retailers a SaaS solution for machine learning-based pricing to strengthen their position against Amazon
- Pilot phase successful: Profits and revenues increased by up to 10%
- Optimal pricing despite dynamic market environment during COVID-19
- Company receives seed financing from High-Tech Gründerfonds and renowned business angels
"Many retailers today still rely on rule-based pricing and price matching. In doing so, prices are closely aligned with competitor prices without checking whether this leads to profit or revenue improvements. In this way, retailers often leave profit potential untapped. Machine Learning technology is used to measure the actual willingness-to-pay of the customers. Pricing based on this leads to significantly higher profits. The customer sets the target and can generate optimal prices for the entire assortment with just one click. 20% off everything is a thing of the past." says Felix Hoffmann, Managing Director & Co-Founder of 7Learnings.
The start-up was founded in 2019 by Martin Nowak, Eiko van Hettinga, and Felix Hoffmann. Felix Hoffmann, previously product manager for Zalando’s pricing algorithm, had the idea to offer small and medium-sized retailers a solution for the next generation of dynamic pricing. For retailers this is an important asset to strengthen their position against the competition from big platforms like Amazon.
Price elasticities can be measured from sparse data. "Thanks to our experience from fashion retail where the assortment changes frequently our algorithms learn across products. Hence, we are able to optimize prices even for products with only a few price changes in the past. Based on this, we can increase profits and revenues by up to 10%."
Eiko van Hettinga, who previously worked as COO at Thermondo, sees the Corona crisis as an opportunity: "The shift of buying behavior towards online channels will last. Due to the changes of demand and the supply chain situation during the pandemic, retailers have to reset many prices. Our solution can capture the changed situation based on trend date and optimize prices towards newly set targets. Retailers who react faster and tailor their response to the changed market situation will be better equipped to navigate through the crisis. This can be vital for survival."
In addition to the High-Tech Gründerfonds renowned Business angels invested in the company. Among others, Elmar Broscheit, Managing Director at Macquarie, and Harald Schedl, Member of the Supervisory Board of INTERSPORT. The founders want to use the additional funds to expand their marketing and sales activities and to further develop their retail automation platform. The start-up has grown profitably to date and works with leading retailers from various retail segments.
Martin Möllmann from High-Tech Gründerfonds comments: "The 7Learnings team convinced us with their vision and approach to data-driven decisions in online retail. Based on latest technologies the team leverages great potential for the customer at manageable cost without having to set up an in-house data science department".
We are really proud to be on the 2020 AI Landscape in the Retail segment together with other innovative start-ups like Zeitgold and Kreditech Holding SSL GmbH. A big thanks to appliedAI Initiative – UnternehmerTUM for the support and work in the AI sphere.
You can find the full map here: https://lnkd.in/dyWB_tF