eKourier Oct 2019

FEATURE

Automated Predictive Pricing Optimisation Big Data meets Machine Learning, these are the buzz words circulating in the world of technology, particularly when it comes to data innovation. When Big Data meets Machine Learning, science happens otherwise known as “AI” Artifi- cial Intelligence. Big words for a big initiative.

P rorize is described as a Pricing AI Platform™ , that rapidly identi- fies the demand patterns and customer preferences to determine the best data-driven, science-based prices. The platform incorporates the latest AI and machine learning algorithms for dynamic pricing, customer sensitivity, demand forecasting and related business conditions to recommend optimised prices at any time frequency – instantly, hourly, daily, weekly, bi-weekly, monthly. It’s been nine months since we first announced the change in direction for Revenue Management in our organisa- tion. Essentially we are transforming a manual decentralised approach to a completely automated technology platform, leveraging a scientific approach to pricing. That platform and function will be overseen by a dedicated Revenue Manager, a model typically employed by the airline and hospitality industries. During the time since the first announcement KSS and Prorize have been working closely together. KSS has been providing years of historical data, this data has been cleaned up to allow the Prorize technology to run its modelling to provide meaningful pricing suggestions and in turn push the updates through to Storman. We are now able to pilot the technology at selected centres. All going well a full roll out not long after.

“We stored our belongings at Napier when we were moving. Happy with the service. You pay a month in advance, however if you do not use the storage for a full month you get a refund. Padlocks available for purchase in the office. Also boxes if needed. When I booked, they followed up via phone to check if we needed extra help and to let us know about the complimentary trailer.” “Absolutely fantastic from start to finish at Murarrie!!! They made our interstate move so, so easy! They are so friendly all the time, they are all so prompt with getting back to you all the time your belongings are in storage. The storage unit is clean, secure and new. We have never had this friendly, professional, awesome experience with any other storage place. They honestly just make everything an absolute breeze and once again, so friendly and awesome!!!! Never write reviews but just had to for these guys, they are the best.” “Used Chermside a few times. Very professional and helpful staff. A modern centre with clean storage units and a modern meeting room.”

Team Members will no longer change a street rate or implement a rent increase. This process will be completely automated and we expect will occur on a daily basis. Team Members will need to ensure they print their vacant unit list daily to stay ahead of any changes. How we communicate these changes is still being worked through. Our Website will continue to collect pricing from Storman every twenty minutes. This is a major change for Kennards, and some of our Team Members may find the change a little strange and take some time getting used to it. All operators large and small in the U.S have been using centralised technology for their Revenue Manage- ment for many years. Our market is no different. In a highly competitive market operators know the performance and sustainability of their businesses depends greatly on getting pricing right and having the ability to move fast. We expect this change will have sudden and immediate impact on the pricing and performance of our business. Using technology means that we can be faster with our pricing and smarter taking in more data points to set pricing like occupancy, pipeline demand, expected move outs, compet- itor pricing and historical trends to name a few.

Darren Marshall Chief Operating Officer

WHAT DOES THIS MEAN FOR TEAM MEMBERS?

7 Kennards Kourier Oct 2019