AI Price Management and Optimization
Price Optimization
With spreadsheets or outdated software you’re struggling to navigate the complexities of today’s market dynamics. Evolving shopping behavior, unconventional competitors, diverse product assortments, rising costs, and multiple sales channels render these approaches obsolete.
Secure a competitive edge by adopting dynamic pricing strategies that leverage cutting-edge AI, cloud-based technology, and established workflows that propel your business forward.
Enhance Profitability, Competitiveness and Customer Loyalty
With an AI and Cloud-Based Pricing Solution
Streamline Pricing
Customer Behavior
Competitive Pricing
Forecast Demand
Integrated Decisions
Drive Loyalty
Localized Pricing
Price Proactively
Category Objectives
WHY
Intelligent Price Management and Optimization
The market is more dynamic, the competition is stiffer, costs are increasing, and consumers are financially stressed.
Yet with AI and machine learning technologies you can quickly price based on demand, competitor pricing, business rules, and consumer behavior analysis.
Leading in Price Optimization
Accelerating Price Maturity Across Retail Industries
Multiple Industries
Your Price Maturity
Pricing and Forecasting
Case Studies
Beloved Grocer Builds Pricing and Promotional Excellence
A grocery store operator, managing a chain of several hundred stores, strategically positions itself as a “high-low” retailer in local markets. The establishment regularly releases a weekly promotional flyer and actively sustains a loyalty-rewards program, complemented by targeted email offers tailored to segmented customer groups.
The retailer aimed to enhance its promotions efficiency and forecasting while optimizing the utilization of available subsidy and trade funds.
Additionally, the retailer required a comprehensive solution that would seamlessly manage both regular and promotional prices without creating planning and execution conflicts between the two processes.
The retailer also needed to integrate planning decisions across operations, marketing, finance, supply chain, and purchasing departments.
Over the course of a seven-month initiative, the retailer embraced Clear Demand’s established best practices, navigating through a systematic crawl-walk-run implementation. The journey commenced with a comprehensive discovery workshop that facilitated the creation of detailed process maps, ensuring a thorough understanding of the intricate facets involved.
Recognizing the need for a streamlined approach, the retailer took a significant step forward by establishing a centralized pricing team. This team, equipped with specialized skills and knowledge, played a pivotal role in orchestrating the successful execution of the solution. To foster internal expertise and sustainability, a train-the-trainer process was introduced, empowering key personnel within the organization to disseminate knowledge and ensure widespread adoption.
This strategic and phased approach underscored its dedication to cultivating an internal environment geared towards long-term success in pricing strategies. The structured implementation, marked by the establishment of a centralized team and a focused training initiative, positioned the retailer for enhanced efficiency and proficiency in navigating the complexities of pricing.
Clear Demand surpassed customer expectations with its forecast accuracy and improved promotions by identifying the best products and offers. This increased promotional effectiveness by 400 basis points.
The implementation of a streamlined approval and workflow process has fine-tuned offer targeting, allowing the organization to benefit from real-time reporting.
In the category review process, standardized reporting is now employed to track effectiveness and enhance basket sizes.
A senior executive has attested that this solution has empowered the retailer to respond more promptly to shopper preferences, delivering a highly appealing overall experience.
Enhancing Lifecycle Pricing Outcomes at a Leading DIY Retailer
An American multinational DIY retailer long known as a low-price leader that operates in every state and the District of Columbia and sells a large assortment of national and private label merchandise including tools, appliances, paint, construction products, and seasonal home and garden products.
Maintaining its low-price leader image a large assortment incurred operational challenges.
Merchandising was siloed, with more than 80 managers making category decisions for over 250K store SKUs and 1M online SKUs.
The retailer identified multiple objectives to improve its pricing practices, including:
• More rapid competitive response
• Improve efforts to localize prices
• Maintain and apply a more accurate integrated forecast
• Identify KVIs and price them correctly
• Meet margin targets
• Maintain line structure
Following a discovery phase to uncover relevant information, the Clear Demand team engaged in a thorough data collection and analysis, leveraging their expertise to collaborate with the retailer in formulating a comprehensive implementation and rollout plan.
This collaborative effort encompassed the strategic aspects of the plan and meticulous definition of an approval process.
Furthermore, the team refined and established new user roles, ensuring that the implemented solution aligned with the retailer’s operational framework and objectives.
This meticulous process underscores Clear Demand’s commitment to tailoring solutions that not only address immediate needs but also contribute to the long-term success and efficiency of the retailer’s operations.
Clear Demand’s solution delivered improved comp-store sales through application of both rules and optimization.
Many pricing decisions were automated where appropriate, and localized pricing helped to improve the retailer’s competitive price image.
Accurate forecasting helped reduce stock outs and promotional effectiveness improved. On clearance items, sell-through improved 18% and revenues increased by 12%.
Clear Demand’s solution increased comparable-store sales by effectively applying a combination of rules and optimization strategies.
The implementation involved the automation of numerous pricing decisions, ensuring a streamlined and efficient process. Notably, the incorporation of localized pricing strategies played a pivotal role in elevating the retailer’s competitive pricing image within the market.
The integration of accurate forecasting methodologies yielded significant benefits, notably in the reduction of stock outs and the enhancement of promotional effectiveness. This precision in forecasting not only optimized inventory management but also contributed to a more seamless and responsive retail environment.
Furthermore, the impact on clearance items was particularly noteworthy, with a remarkable 18% improvement in sell-through rates. This translated into a 12% increase in revenues, underscoring the tangible and positive outcomes delivered by Clear Demand’s solution across various facets of the retailer’s pricing and inventory strategies.
EBOOK
Accelerate Your Pricing Maturity
Intelligent Price Management and Optimization is increasing in importance for omnichannel retailers in light of current developments. Legacy processes that rely on spreadsheets and rules of thumb no longer meet the challenge.
No matter how proficient a retailer is in their pricing maturity, they can take steps to improve their profit, revenue, and competitive position.
This guide from Clear Demand outlines the path to optimization for sustained profitability in today’s highly dynamic marketplace.
Shatter Your Pricing Goals
Whether your new to price optimization or deeply educated with technology, we can provide you the solutions to meet your goals.
Our patented science analyzes historical sales to understand shoppers’ sensitivity to price and generates price and promotion strategies that account for pricing rules, cost changes, and competitor prices.
Our innovations in retail science simplify adoption and use, while allowing retailers to see value in just weeks with transparency and minimal disruption to their business.
