How Low Should You Go?
A steady diet of well-conceived, well planned and executed promotions is an essential element of retail success. Retailers know they create heightened interest and provide a call to action for shoppers.
Determining the right discounts on the right items has evolved from an instinctive art to a science-based planning process that leverages the Machine Learning capabilities built into Clear Demand’s every-day pricing solution.
Promotion pricing is a fundamental process of retail that may account for most or all of your net profits. Go too low and you undercut margins. Too shallow and you sacrifice lift. A scientific forecast of shopper response is essential to your planning process.
Your Promotions Send a Message
Use Machine Learning to master a “macro and micro” view of your promotion planning. Analyze which categories (macro) and which products (micro) hold the greatest opportunities for lift and profitability. Fold in competitive price data to derive an accurate response forecast.
Clear Demand Promotion Pricing incorporates trade promotion management capability and provides a single unified promotional calendar with planned events across categories and their forecasted impact across channels.
With the confidence of a comprehensive solution, you meet your competitive pricing goals while executing more profitable promotion plans.
Your shoppers learn to expect thoughtful, meaningful promotions that invite action, without undermining your everyday price-value story.
Simple and Complex Offers
Setting promotion prices is a fundamental weekly process of retail that demands continuous attention. Promotion managers need reliable analytics and guidance in several key areas:
- How deep to discount individual items
- Replenishment planning for anticipated fast-movers
- Interaction effects that may lower take-away on competing items
- Post-promotion “dips” in the category
- Impact of cost of goods and trade funds.
The insights depend on a reliable forecast and a true understanding of base demand, derived from your every-day pricing discipline.
Simple offers are challenging enough, but more challenging promotion types like BOGO, multi-buy or product line offers are in play, it takes Machine Learning to back up human judgement.
By design, Clear Demand’s promotion pricing solution supports the people who do promotion. It doesn’t prescribe choices. It reveals what the impact will likely be when a price change is executed so your planners make fully informed choices.
“Our goal is to provide our customers with a new shopping experience that reflects changes in their shopping preferences. Clear Demand enables us to better plan, manage and optimize our promotions so that we can continue to fulfill our promise to customers.”
Latest Content On Promotion Optimization
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- On July 11, 2018
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- Posted by Adam Rosenberg
- On February 22, 2018
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