“The Price is Right” or “Wheel of Fortune”; the pricing game for the digital moment
Bob Hetu, Research Director at Gartner
Digital business is the creation of new business designs by blurring the digital and physical worlds via an unprecedented convergence of people, business and things. When ordinary objects become an active part of the shopping process opportunity occurs in transient moments. Retailers must be ready to seize these opportunities with the right product in the right place and at the right price, in the blink of an eye.
Revionics Roadmap Overview: Continuing the Journey to Deliver Innovative Solutions That Help Retailers Become More Profitable
This session will provide a high level review of the features Revionics has delivered over the past year with emphasis on the latest features of the 5.7 release. In addition, it will also provide customers with key insight into Revionics Roadmap and Strategic Direction for 2015 and beyond.
Shopper expectations in an omni-channel world: Insights from the annual Cognizant Shopper Experience Study
Greg Kameika, Senior Manager, Cognizant
This presentation will share some key findings from the annual Cognizant Shopper Experience Study. Using the results of a 5,300 respondent multi-country survey, customer likes/dislikes and expectations will be reviewed. Some areas highlighted will include: price and how it’s viewed by customers; cross-channel / omni-channel integration and the importance of execution; what shoppers want/expect in personalization and loyalty, and how shoppers compare their the retailer experience to travel, hospitality and consumer goods manufacturers experiences.
Customer Case Studies:
“Our catalogue is not our epilogue!” Dynamic Pricing in an Omnichannel World
Chris Watters, Strategic Development Manager at Argos
In October 2012, catalogue-based Argos outlined a five-year transformation plan designed to address emerging competitive challenges, exploit marketplace opportunities and reinvent the company as a digital retail leader with adjoining performance enhancements. A key ingredient to that transformation plan has been leveraging big data to develop the right offer to an increasingly digital shopper. In this session, Argos will discuss both the challenge and opportunity of dynamic pricing, adopting effective pricing strategies and applying the science of price optimisation. Chris will also share insights into how Argos has evolved its retail pricing strategy to connect with the digital consumer, innovate and thrive in the highly dynamic and competitive UK market.
Markdown Value Measurement Drives Adoption, Collaboration & Results at Dicks Sporting Goods
Bryan Kirby, Manager of Pricing, Dicks Sporting Goods & Keith Vertrees, Pricing Science & Strategy Services, Revionics
Dicks Sporting Goods shares their experience in using value measurement to build buyer and planner confidence in markdown recommendations. Pioneers in measuring markdown value, they partnered with Revionics to develop new methodologies to measure the effectiveness of optimized markdowns. This trust, coupled with a realignment of incentives, has resulted in very high levels of user adoption, full integration into planning processes and increased markdown effectiveness.
Best Practices Sessions:
Competitive Intelligence – Act with Surgical Precision
Does that competitor's price change matter? Are they really a competitor on that product? Do my customers notice the difference in price? Without the answer to these questions the safe bet has always been to err on the side of competing on price—but that gets expensive. What if you had the answers to those questions? What if you knew who you really competed with and on what products, and what differences in price really drive changes customer buying behavior?
With Competitive Intelligence these, and other, questions are answered. Join us and see how the power of your data can be unleashed to provide smart, precision, and measured responses to your competitive environment.
Value Measurements goes Mainstream- What's new in 2014
At Revionics, we understand how crucial value measurement is in the successful implementation of our price optimization solutions. Accurately measuring value builds confidence, guides strategy setting and adjustments, encourages adoption, and ultimately measures the return on your investment in price optimization. In this session we will provide an update of methodological advancements and best practices that have been developed to help you build a solid value story within your organization. Specific topics will include: 1) value measurement over time: best practices for measuring value early versus late in the adoption rollout, 2) creating a value measurement storyboard, and 3) identifying true value signals in a ‘noisy’ data environment.
Stepping up Your Base Pricing Game with Simulation
Ignite your pricing strategies through simulation! The highly dynamic and complex world of retail pricing demands that pricing teams be able to successfully react to and effectively assess numerous scenarios that heavily impact their business. Unleashing the full potential of simulations within your pricing solution will enable you to fully solve the pricing challenges of today while helping you to establish your pricing strategies for tomorrow. In this course for strategically minded individuals, you will:
- Learn how simulations will enable you to optimize your pricing strategies
- Experience the richness of margin enhancement through global optimization
- Unleash the full potential of your private label and good-better-best strategies
- Master the intricacies of category and zone simulations and overrides
- Become ‘the problem solver’ for the merchants in your organization by becoming the fact-based, scientific expert that they trust
The time to hesitate is through.... light a fire under your pricing strategies with advanced simulations!
Dynamic Pricing – Are You Ready?
The humble price tag once communicated so much—but now it feels so constraining. Shoppers are being provided a vast array of technology and services that are breaking down the traditional retail information asymmetry, and are more frequently acting at a moment’s notice on the right deal for them. This is beyond the price tag: this is dynamic pricing. Real-time analysis and decision-making requires robust tools that consume big data and reduce it to the strategy and tactics you want to execute. Join us and learn about new trends and advances in daily and intra-day pricing, real-time competitive intelligence, clickstream & social data mining, and real-time customer-targeted promotions. Embrace the brave new world of e-commerce!
Keeping Your Price Optimization Models Accurate and Fresh
Data validation, Science services, Scenario planning, PI, and Value measurement are all part of the continual journey in keeping your optimization model accurate and fresh.
Data validation is key to keeping your model healthy and in tune. Have the number of exceptions increased or decreased dramatically over time? Through science services, you can take advantage of KVI analysis, store zone and item clustering to insure that you are understanding and responding to changing market and customer conditions. Building upon this knowledge, scenario planning allows you to test out new strategies and goals to capitalize on areas of opportunity. Use scenario planning to determine if you are indexing to the right competitors, and if you need to adjust those indexes over time. Once you have implemented any changes through scenario planning, understanding the effectiveness is crucial. This is where PI will help document your results. Finally, using the value measurement tools will allow your business to identify areas of opportunity and success.
Enhanced Insights from Price Review
As the Revionics base pricing Price Review screen evolves, new capabilities that substantially enhance the analytic power of the technology are introduced. These new capabilities enable a greater number of disciplines to use Price Review to analyze the impact of price change. This session will discuss the power of the Price Review screen and how to craft new managed views to enhance analysis of key metrics and actionable results. This session will also provide visibility into additional columns that can be leveraged to gain answers to specific business questions. Are retail prices aligned with cost changes? Do I have the right items identified as KVI’s?
Making Better MD decisions with What if Scenario Planning
Experience the in-and-outs of Revionics Markdown “What-if” capabilities and learn how to assess markdown objectives, prepare scenarios, change configurations, and simulate strategies that will provide you with the price recommendations to achieve your objectives.
Whether your goal is liquidating your inventory to free up space for next season’s assortment, liquidating discontinued products prior to the new model arriving or driving inventory and margin performance of your inventory, our “What-if Scenario Planning capabilities will provide you with the tools necessary to execute your merchandising strategy and reach the desired financial objectives.
Markdown Optimization – Quantifying the Benefit
Markdown Optimization enables goal-driven clearance activities designed to deliver better results through science than can be achieved manually by a retailer. Once Markdown Optimization recommendations are executed, how do you quantify this improvement? Join us and learn about our measurement options for Markdown, and how we can provide the tools and information needed to drive adoption and quantify value. We’ll take you through the process, example results, and how to get started!
Aligning Inventory and Markdown Strategies
Markdown Optimization is often viewed as a last chance approach that can make the best of the challenging situation presented by misses in the assortment planning, inventory investment and allocation processes. However, proactively including these processes as components of the end-of-life process for a product can help retailers recognize greater margin and cleaner transitions at the completion of each season. This session will discuss the interactions between inventory processes (localized assortments, end-of-life inventory flow, and below chain pricing) and effective clearance markdown strategies. Furthermore, we will examine the tradeoffs between precision markdown pricing and operational inventory efficiencies.
Promote Less but More Profitably with Item Cluster Analysis
"To promote or not to promote that is the question"…Promotions are an integral part of any retailers strategy, and it is critical to have effective promotions. Many retailers are over promoting trying to drive sales improvement but at what cost? Not all products perform similarly when placed on promotion, and Item Clustering Analysis (ICA) can help retailers determine which items have better customer response based on sales type. ICA allocates products into groups, based on distinctions between regular price elasticity and promotional elasticity and helps to determine the maximum potential of an item for promotion. From gut feel to fact based, know which items are meant for promo and which items just don’t make the grade. ICA can empower retailers to better negotiate those ever important vendor funds against those items that really move the needle.
Current to Future State - Aligning Processes and Responsibilities
The end-to-end process that is required for Promotional planning and execution is truly a collaborative effort across multiple teams and often times across multiple channels. The understanding of each teams responsibilities, deadlines and process flows as well as various system integration touch points, are all crucial for bridging the gap from a current state to a future state. The Revionics Promotional module will help streamline existing processes as well as provide new Science driven insights. As the transparency of planned promotional activities emerges, each team will have to work closely to achieve their shared objective. We will explore methodologies for laying this groundwork and preparing an organization for a successful implementation and adoption of Revionics Promotional Optimization.
Demystifying the Science of Promotions
Does print ad provide better lifts than email or are the promotional lifts better when the offer is circulated both in print and email. Vehicle, timing, placement, segments are all very important decisions for an effective promotion. Revionics promotional science can help answer these questions. The causal factors that influence promotional performance are broken into components to explain the individual lifts. Combined with cannibalization and affinity lifts Revionics provide optimal offers and forecast for the promotions. Different rule sets provide flexibility to drive optimization and allows for simulating multiple offers.
Price Optimization Maturity Model Continuum
The past 2 years have seen an increase in the number of clients who are focused on getting as close as possible to having 100% of their categories on Base Price Optimization while also increasing the acceptance of, and confidence in, price strategies and recommendations. With the maturing of Price Optimization, there is a spectrum of opportunities between using it for decision support and decision automation.
This workshop will explore this move towards “automatic acceptance with exception-based management.” The goal of the session will be to develop a continuum containing the sequence of steps that should be followed and the pieces that need to be in place in order to achieve exception-based management most effectively.
Questions/topics out line for consideration to discuss/answer with this workshop:
- Some companies predominantly use price review and other use simulation to generate price changes. Does either process lend itself to more effective exception management/automation or is a hybrid approach the best use of the solution’s capabilities?
- How do you know when you are ready to take the leap? Are there key confidence/trust building metrics or processes that enable the move to automated price acceptance? What are they? How do you measure them?
- How does ownership of pricing impact the move to automation? What are the areas of pricing that are driving reviews and the changes to the price recommendations today?
- How are exceptions identified? What use has been made of managed views and/or PI? What is done in external systems?
- What sort of constraint analysis needs to be done? Which configurations, constraints and rules are tightened and which are loosened – if any?
Measuring Value - how do you do it?
Come join a select group of your peers in an open discussion on Measuring Value in your organization. Be part of both national and international pricing leaders as they discuss challenges, as well as strategies and tactic, being utilized to access value from their effort including; The role of adoption in value, organizational efficiencies and other hard and soft value measurements. We will consider topics like: What does value measurement mean in your organization? What elements are you currently using and what can you bring to bear to enhance your measurement efforts.
Questions/topics out line for consideration to discuss/answer with this workshop:
- Who owns value measurement in your company and what does value measurement mean specifically to your company?
- What areas or measurements do you report on? Sales, Profits, market share improvement, Organizational or process improvements, etc.?
- How and how often do you report it? And who to?
- How do your efforts around adoption effect the value to your company for the pricing tool
- How do you align internal reporting with reporting from the tool?
Morphing Promotional Processes into Best Practices
Retailers are struggling to adjust their promotional process away from the “ad centric” world into the omni-channel environment full of complex promotions, a vast amount of promotional vehicles and tough financial objectives. This session will discuss some of the challenges retailers are facing as they struggle to adjust their business processes and deliver targeted promotions. Gain insight into the trends taking place and how Revionics Promotion Optimization will enable customers to remove silos, adopt best practices and achieve strategic and financial objectives.
Markdown Optimization – Creating a unified business model across all Merchandise types
This session will help retailers accommodate different business processes required to address both short and long life merchandise, pulling them together into a single solution that addresses both in-season and category resets. Gain insight into how the short-life functionality typically reserved for fashion retailers will provide incremental value to any retail vertical.
Growing loyalty through Social Promotions
This session will provide an in-depth overview of Revionics leverages the end-to-end social promotions to grow loyalty. Gain insight into how retailers are taking advantage of the advanced capabilities and how Revionics Promotion Optimization will work side by side to pull social promotions into an overall promotional plan.
Competitive positioning and enhanced category management with Price Optimization 5.7
This session will help customers understand new capabilities available in the latest Revionics Price Optimization releases and how they can be leveraged to improve category management. In addition, it will reveal how the new 5.7 enhancements unleash the power of leveraging competitive pricing and deliver additional power to both eCommerce and Brick and Mortar retailers.
Performance Intelligence 5.7 – Kicking up Reporting & Improving Value Measurement
This session will provide a deep dive into how PI 5.7 is enabling more robust value measurement. Gain insight into how you can leverage some of the new capabilities to quantify the value of Revionics and improve adoption. In addition, this session will reveal how Revionics has introduce new architectural enhancements to support a more robust reporting experience.
Macro Space Optimization - Maximizing Your Profits by “Right-Sizing” the Space in Your Store
This session will show you how easily ASO is used to identify where the opportunities are to improve your revenue & profits and how much you can expect to capture. You'll see how ASO uses “what-if” scenario planning to bring in the innovation you're seeking while holding existing sections to their maximum potential. ASO offers transparency into how the recommendations are formed so you can see exactly how the return on investment will be achieved.
“Shopper Touch Points: How shoppers are engaging with retailer marketing and merchandizing”
James Dodge, Nielsen, North American Lead, Retail Consulting & Analytics
Nielsen will share recent research into shopper engagement with both traditional and digital touch points. The results from our Nielsen panelist, retailer and manufacturer surveys point to how the industry will need to think about pricing and promotion in a challenging Omni-channel world.
“Your Journey to Pricing Excellence!”
Mark Kelso, Founder and Managing Partner, Price Revolution
Price optimization is a journey requiring attention to changing consumer behavior. Are you continuing to increase the benefits of price optimization by reviewing your strategies at regular intervals? Maybe you are treating your strategy setting process as a destination and not a journey. Changing consumer behavior can make yesterday’s strategies stale. The only way that a retailer can stay on top of trends and continually push for better results is to make course corrections in strategy when changes in trends necessitate. This session will explore the benefits of adopting a continuous improvement focus to your strategy setting process.
“Can a Price Promise Transform Sales?”
Bruce Dove, President, Brand View
Changing shoppers’ perception of price can transform sales and bottom line performance. Retailers have spent millions on promotions and lowering everyday prices whilst abjectly failing in their objective to shift perception.
As a retailer, it is difficult enough to change your shoppers’ perception of your own price and, as a result, increase loyalty. That challenge ramps up considerably in changing the perception of your price held by shoppers of rival stores. This however can be essential in building traffic and winning additional share.
There are a myriad of approaches to suit a huge variety of objectives. Price Promises or guarantees can be multi-channel, surgically executed against specific shopper segments or KVIs or based on the shoppers entire shop.
Retailers that have executed Price Promise initiatives which are easy for the shopper to understand and participate in, and that are well supported both above and below the line, have gained considerable advantage (sales, profit, share price and PR). They continue to enjoy a price perception that remains substantially changed as a direct result of the Price Promise initiative.
“Competing on Value and Context in a Transparent Pricing Landscape”
Keith Anderson, Vice President, Strategy & Insights, Profitero
Shoppers check prices at the shelf. Online selection is "infinite." Same-day delivery promises to redefine convenience.
How are these and other emerging shopper and competitive dynamics redefining the strategic role of pricing? How can retailers compete on value without racing to the bottom on price? How far will personalized pricing evolve? What approaches are retailers taking to omnichannel pricing?
With fresh data from Profitero's online intelligence platform, you will discover emerging approaches to optimizing prices and communicating value against increasingly diverse competition.
“Turbocharging Price Optimization with Intent-to-Buy Data”
Ken Ouimet, CEO/Founder, Engage3
Turbocharging Price Optimization with Intent-to-Buy Data Ken Ouimet, CEO/Founder, Engage3 Price optimization delivers strong results using retrospective transaction data. Price optimization can provide bigger returns using forward-looking data that captures the consumer’s intent-to-buy. Ken Ouimet, a price optimization pioneer at Khimetrics, will reveal how Engage3 can bring your customer’s voice directly into the pricing equation.
This year we are proud to offer at no charge 3 different Certification Training classes for Revionics clients. Two of the classes are for base Price Optimization and the third class is for Markdown Optimization. These 3 sessions include lecture and hands-on labs with laptops provided. Attendees will have access to our Pricing Strategy and Science teams in an educational atmosphere.
All training will take place on Wednesday, October 22nd in Revionics’ Headquarters office (5000 Plaza on the Lake, Suite 200, Austin, TX 78746). Advanced registration is required as limited number of seats are available.
Attendees are responsible for their own transportation and lodging Wednesday night. The training will conclude by 3:00 p.m. on Wednesday. All attendees must commit to stay for the full duration of the training. Please plan air travel and lodging accordingly. If you need hotel room for Wednesday night, please book appropriately at the Hyatt or at a convenient hotel close to the Revionics Austin office or airport.
Base Price Optimization Certification Training: Level 1
Level 1 Certification is training for beginners and advanced users that may need a refresher.
- Prerequisite: Having a working knowledge of the system and be the “go to” person for price optimization in your organization.
- First come, first serve sign-up basis. 30 seats available.
This training class will focus on:
- The definition of price optimization and how it leverages both rules and science to determine optimal base pricing
- The various configuration components, features and capabilities of base price
- Base pricing screens and their functionalities
- Basic value measurement reports
- Hands-on exercises involving:
- Price Review – Basics / Item details/exporting
- Price Family – Managing price families o PLG Groups – Creating and managing PLG groups
- Competitive Pricing – Managing competitive pricing in base price
- Scenario Planning
- New product enhancement features
At completion, students will understand:
- Price optimization, modeling and elasticity.
- How to get the most out of the price review screen.
- How to create, manage and optimize price families and PLG groups.
- How to create and simulate scenarios.
- How to test and compare various models to identify the best strategic direction to achieve your organizations goals.
- How to evaluate and measure the forecasted impact for various strategies against the same products.
- How to create and evaluate alternate competitive groups and indexing.
Price Optimization Certification Training: Level 2
- Prerequisite: Completion of last year's Level 1 Certification Training.
- First come, first serve sign-up basis. 15 seats available.
This advanced training class will focus on:
- Product Group use cases for base and seasonal KVIs including their analysis and configurations
- Who should be involved in and who owns the Product Group item assignment
- How frequently should they be updated and key triggers that drive an update
- How many KVI’s is the right amount- taking into account item count (too many can erode profit, too few can erode price image), revenue impact and price image
- Assigning strategies and configurations to KVIs
- How to leverage the new Price Review Columns and Views including Elasticity, Elasticity Confidence, PSI, and Impact (including Cannibalization and Affinity) to drive incremental analysis and value
- Understanding where to focus your time within Configuration Management to achieve maximum benefit, including the correct number of Ending Number strategies, and the use of Scenario Planning in testing configuration and strategy changes.
- How do you best analyze and report upon changes to Configurations and Strategies.
At completion students will understand:
- The roles that Product Groups (KVI’s) play within your business and the best items to achieve the goals desired
- What role the advanced configuration components play within optimization
- How to understand and evaluate current strategic configurations
- How to model and change these configurations within the system on demand using the What-if Scenario Planning capability
Markdown Optimization Certification Training: Level 1
- Prerequisite: This class is available to all markdown optimization clients and users of the portal.
- First come, first serve sign-up basis. 15 seats available.
For leading retailers, optimizing markdowns to local shopper demand provides an opportunity to maximize margin, sell-through, and inventory value while improving velocity of product assortment. In this training we focus on the markdown optimization process from creating events for what-if scenario planning, optimization and analyzing results, all the way through executing prices to stores. Additionally, we’ll be walking through the new short life cycle mark down functionality and other features included in release 5.7. This is designed to be an interactive training with a mix of lecture and hands-on activities so participants will understand and apply what they’ve learned in a mock environment.
At completion you will know:
- The terminology and key concepts of markdown optimization
- How to create, update and copy a markdown event and group in the Revionics portal
- Each of the unique rules that help to achieve your markdown goals
- How to create an override group, which allows a user to force a markdown on an item(s) that don’t meet the business objectives of the other items in the group
- How the optimization process works and the different components that contribute to recommending a price
- Each of the commonly used reports used to analyze markdown performance
- How to approve and un-approve markdowns once your objectives are met
Attendees involved with certification training who wish to stay in Austin Wednesday night are responsible for booking a hotel of their choice on Wednesday 10/22. The training will conclude by 3:00 p.m. on Wednesday. All attendees must commit to stay for the full duration of the training. Please book lodging and air travel accordingly.