Promotion Planning, Simulation & Optimization
Retailing is now in the grip of promotions frenzy. The frequency and number of promotions has increased dramatically over the past few years in response to increased online competition and increasingly informed and price sensitive consumers. Increasing the number of promotions has not, however had the desired effects. This activity has trained shoppers to expect discounts and consequently has sent retailers into a downward spiral of decreased margins and sales.
Retailers can escape this dangerous promotions vortex with the Revionics© Promotion Optimization solution. With promotion optimization it is possible to beat the competition and stay ahead through the use of advanced algorithms that blend science, rules, and promotion strategies to select the most profitable items and offers.
Science-based Omnichannel Promotions that Deliver
Promotions are optimized through a combination of data, science, analytics and a retailer’s strategies. The optimization engine blends these components, factoring in price elasticity, shopper behavior, promotional vehicles and uplift as well as competitor activity to deliver profitable promotions.
Here are a few highlights of what Promotion Optimization can do:
Quantify Promotion Lift
Model merchandising activities to make profitable, fact-based decisions when developing your promotional strategy.
Measure Net Impact
Simulate a variety of promotion vehicles and merchandising types to understand the total net impact of the chosen event.
Quantify Affinity and Cannibalization
Insight into which products are trip drivers or basket builders, while avoiding unnecessary discounts that aren't relevant to consumers.
Implement Accurate Forecasting
On-demand modeling can be conducted at the event, version, or offer level to help predict impact of promotional event.
Key Solution Features
Revionics® Promotion Optimization presents shoppers with the right offer in the right channel while delivering bottom-line results. The solution supports the needs of retail merchants, marketers, buyers, and executives. Our user-friendly interface is configurable based on the complexity of the promotions. With built-in forecasting, retailers can minimize out-of-stocks and improve inventory management. Post event, the solution provides measurement of campaign effectiveness thus enabling iterative improvement of promotional activity.
Revionics best-in-class features include:
- Strategy planning and modeling
- Recommendations for best items and offers
- Support for multiple promotion types
- Layout configuration and cloning
- Deal collection and repository
- Event creation and delegation by role
- Intelligent workflow based on roles
- Offer-level strategy configurations
- Segmented offers by demographics and loyalty program tiers
- On-demand “what-if” simulation
- Complex promotions (BXGY) support
- Category cross-effect analysis
- Forecasts item impacts
- Location impact analysis
- Actionable reporting and insight
- Scan down report automation
Price Optimization Benefits
Retailers who use Revionics® Promotion Optimization see Sales Increases of 1-12%, Unit Movement Growth of 1-9% and 5-20% Gross Market Gains.
- Improves cross-functional planning and execution among stakeholders with central management of promotional content and tasks
- Reduces promotion cycle and production time
- Optimizes media spend by simulating promotional events for additional insight
- Maximizes use of vendor funds with accurate performance tracking against vendor deals
- Maximizes potential sales with accurate demand forecasts that minimize out-of-stocks
- Accurately forecasts impact to budget more effectively
Explore More on Promotion Optimization
Review this selection of thought provoking insights, customer experiences & articles to learn more.
For more information please visit our Retailer Resource Library for a complete selection of thought leadership papers, data sheets and on-demand webinars. Additional case studies can be found on our Customer Case Study page.