Krishna Roy over at 451 Research just released a new report on Perfect Price (subscription required).
A couple of highlights :
[Perfect Price is] focused on touting a cost-effective, fast and easy-to-use service for price optimization. Perfect Price believes the offering will appeal particularly to the midmarket, where price sensitivity and lack of IT resources are issues that have driven the adoption of cloud services.
This is indeed a huge issue for our client base - without 7-figure budgets to pay Oracle, SAP or IBM (or McKinsey) it’s hard for midmarket companies to make great decisions with their data. In the venture world, $50mm is what everyone’s aiming for - but even at that level, you’re not going to get time with big business intelligence players.
On the technology and product itself, she wrote:
It uses data on a company’s website as a starting point, grabbing information used to make online purchasing decisions in a Web browser, including the items in a shopping cart. The offering uses this information, in tandem with other relevant data sources, to build a predictive model for consumer behavior. Third-party information, which could affect price, such as economic and meteorological data, is brought into the model without analyst or IT intervention.
We empower marketing, and take burden off of IT. Rather than hire machine learning PhDs and hadoop experts, Perfect Price enables its clients to leverage their own data without getting in line behind other (probably lower ROI) projects. And we save the need to go find and license external data to augment your own - it’s all already on the platform.
We anticipate Perfect Price squaring up to established purveyors of price optimization offerings such as Oracle and IBM, which have made acquisitions to enter this sector. Oracle acquired ProfitLogic in 2005 and IBM snapped up DemandTec in 2011. SAS Institute and SAP are other big names in price optimization, which is also a sector served by pure plays including Vistaar Technologies and Revionics, as part of a broader pricing management suite.
Krishna put Perfect Price directly up against competition like Oracle, SAP and IBM - and concluded that we had an edge. We’re excited to see where that takes us.