Unified Pricing, Promotion and Markdown Optimization
While many traditional retailers are suffering from the COVID-19 crisis, it seems that online retailers continue to grow. Some e-commerce sectors even experienced unprecedented sales in 2020.
Uncertainties on the market due to pandemic turmoil, volatile demand, temporarily shortages of supplies and customers shifting to online are among the reasons for increased pressure on retailers’ efficient pricing.
Advanced pricing strategies, such as UPPMO, play a key role in fulfilling profit-related goals. Yet, many organizations struggle to adapt to such strategies and rely on semi-automatic solutions that deliver only suboptimal results.
Using AI and optimization techniques, UPPMO helps retail clients set up their optimal pricing strategy to achieve their desired KPIs (revenues, margin and so forth).
The solution supports category managers by executing typical pricing-related processes, i.e. setting prices for specific product/category/brand, reporting KPIs, designing price architecture, managing competition prices, etc. Depending on the use case (regular, markdown, promo), it finds an optimal pricing strategy for the selected products using AI, which takes into account various factors such as actual consumer behavior, seasonality, competition and marketing.
Once we validate and select a winning pricing strategy, we deliver price predictions on KPIs like profit, revenue, category margin and volume.
Category managers can run different what-if scenarios and chose the best pricing strategy with respect to predictions of the key KPIs, such as margin, revenue or volume.
The three modules – regular, markdown and promo – allow you to easily integrate a client’s data and other data sources that can affect pricing, such as market data and competitors’ prices.
- Profit increase of 5-20% while preserving turnover and price index
- Revenue increase of 3-8% while preserving profit and margin level
- e2e pricing, including price optimization and management, saves time and resources devoted to pricing