Revionics Experts Stepped Forward to Help Retailers Tackle Their Most Daunting Challenges in 2018
Throughout 2018, Revionics’ experts were active and visible, shedding light on critical issues and trends impacting retailers worldwide. Their expertise and valuable insight were featured in leading media outlets globally including Business Insider, Chain Store Age, CIO magazine, Convenience Store News, Cosmetic Business, RIS News, eMarketer, Progressive Grocer, International Supermarket News, Internet Retailer, Lebensmittel Zeitung, Pet Worldwide, Retail Leader, Retail Systems, Retail Times, Retail TouchPoints, Total Retail and more.
Revionics also commissioned a series of shopper and retailer studies conducted by Forrester Consulting, illuminating consumers’ preferences and tolerances and the implications for retailers’ pricing, promotion and markdown strategies and execution. This research also exploded many long-held pricing and promotion myths that persist in the industry.
Some notable highlights include:
Retail Leader | “The 2019 Outlook for Retail Tech Innovation”
Retail Leader featured an article by Tony Smith, our VP of Science Services, on innovations predicted to deliver significant impact on the retail industry in 2019. Having spent years leading teams applying artificial intelligence (AI) and machine-learning science to help drive quantifiable business value and ensure customer-centric pricing for retailers, Tony spotlights accelerating changes underway in how retailers think about AI in retail.
Some key takeaways:
Retailers Get Dynamic
It’s critical for retailers to reach shoppers with relevant, carefully crafted prices and offers, when and where they matter across a variety of channels and vehicles; therefore, taking a dynamic approach to pricing is critical. Dynamic pricing must be:
- Targeted and smart, focusing on updates on those items where shoppers are most sensitive to prices and to competitive offerings
- Flexible in frequency, allowing price changes to happen at a speed that matches the reatiler’s business parameters.
- Structured for a fast and automated process, leveraging self-learning, science-based algorithms and automated workflows
Price Remains King – But Must be Fair and Non-Arbitrary:
Price is king, and recent Revionics-commissioned research conducted by Forrester Consulting surveyed shoppers globally and found that price was the number one factor shoppers cited when deciding where to shop.i This was true across all retail sectors, including grocery, apparel, DIY, and convenience.
Another surprising finding was that an impressive 78%ii of shoppers say they are comfortable with the use of data science to determine prices — provided they receive a fair price for the product. Conversely, just 6 percent of respondents say they don’t think it is fair at all for prices to change dynamically. So, yes, price is still king!
2019: A Year of Opportunity
Retailers can’t afford to trust “tried and true” approaches to pricing and promotions and they can now leverage the unprecedented advantages available to them through AI-powered science and rich data sources that give them deep insight into shoppers, competitors and the overall retail landscape. Retailers can learn from other organizations who have walked down the AI-powered pricing path and can obtain a jump-start on best practices in this area. This will result in price and promotions that better engage and retain customers, resulting in top- and bottom-line growth, which will position retailers for long-term success.
Click here to do a deep dive into this article.
The holiday season is upon us and our Chief Marketing and Strategy Officer Cheryl Sullivan was asked by RIS News to weigh in on pricing and promotion strategies for this all-important season. Cheryl highlights how retailers globally can sharpen their pricing and promotion efforts during the holiday season and with these key strategies:
- Don’t over-promote and leave margins on the table with poorly conceived promotions
- Price is king: retailers must provide relevant prices to keep customers engaged
- Provide the offers that are relevant via meaningful channels and cadences to targeted shopper segments
- “Arbitrary” prices alienate shoppers – possibly forever
To read this article and sharpen your pricing and promotions thinking, click here.
Everyone can agree that unprecedented pressure from new and entrenched
competitors, both in-store and online, create relentlessly and brutal market dynamics. But it is also a time of unprecedented opportunity for retailers to leverage granular and fast-flowing data about shoppers, competitors and the market with AI-based analytics and optimizations.
Retailers must stop the madness of bombarding shoppers with unwanted and ineffective offers. This media article features findings from a series of Revionics commissioned global shopper studies conducted by Forrester Consulting, which found that 52% of the weekly or monthly retail promotions go to customers who would happily have paid full price,iii this significant waste of promotional offers is shocking.
As Cheryl says in the article, “How can retailers and e-retailers harness their growing data assets to stop the bleeding and engage shoppers in ways that really matter? Today’s retail is now powered by artificial intelligence (AI). Using the power of machine learning’s advanced data science, retailers are able to provide the most optimal channel-specific prices and offers that can be frequently updated to reflect fast-changing shopper, competitor and market signals.”
Click here to view the complete article.
Want more insights from Revionics experts? Explore these articles:
- Total Retail | Pricing, Promotions and Personalization: Some (Surprising) Insights From Global Shoppers
- DIY International | AI beats gut instinct
- Retail TouchPoints | Shoppers Weigh In On Pricing And Promotional Strategies: What You’re Doing Right And Wrong, And What You SHOULD Be Doing