Earlier this month retail executives from around Europe came together in Cologne, Germany for the EHI Retail Institute Conference, which focused on how AI will transform the retail industry in the coming years. The theme — “Artificial Intelligence and Analytics” — ignited exciting exchanges among retail leaders around the latest developments in this area. A strong consensus is that AI is a “must have” for retailers, ad nowhere more so than in the areas of price and promotions.
During a joint presentation title “AI Pricing Solutions; Looking Beyond the Hype,” which I delivered together with Ales Drabek, Chief Digital and Disruption Officer at Conrad Electronic SE, we spoke to AI in the context of our own personal and organizational experiences.
Leveraging AI in retail helps retailers make better decisions, empowers them to react with more agility to market developments, provides up-to-date shopper and competitive insights, allows retailers to continually improve and generates new profit-generating possibilities. While the majority of retailers don’t yet leverage AI-based pricing, a Revionics-commissioned Forrester Consulting global study found that 76% of retailers believe AI-driven pricing would have a positive impact on shoppers.i
One reason the adoption of AI in retail may be slow is many retailers don’t truly understand what AI and Machine Learning is; therefore, during the presentation the speakers defined it in Layman’s Terms:
Revionics has been helping retailers leverage proven AI, SaaS-based solutions that deliver quantifiable results. What qualifies an AI solution to be market ready and deliver business impact? Here’s our view:
Revionics has been leveraging AI and Machine Learning in its price, promotion and markdown optimization solutions for years. Retailers around the world have been leveraging these solutions for more than a decade, including in-depth capabilities such as forecast risk classification; attribute modeling; product attribute interference; probabilistic modeling cannibalization; demand modeling and forecasting; demographic demand analysis; demographic store modeling; store-zone clustering; and markdown cluster optimization.
Rooted in both retail and science, our solutions help retailers around the world harness the power of AI, which results in a stronger ROI, an enhanced competitive advantage and a more finely crafted improved price image.
Check back soon for a related blog post that will focus on Conrad’s real-world example of AI-based pricing and promotion at work.
i Retail Success Requires Personalized, AI-Driven Pricing Strategies, A Revionics-Commissioned Study by Forrester Consulting, October 2018
Maisie is a content marketer and copywriter specializing in B2B SaaS, ecommerce and retail. She's constantly in pursuit of the perfect combination of words, and a good donut.