A recently published Digital Radar report from PlanetRetail RNG (now Edge by Ascential) does a great job of laying out the case for retailers to adopt price and promotion sooner rather than later, stating bluntly, “The level of urgency means that retailers and brands should be investing in Price and Promotion Management (PPM) capabilities now.”i
The Digital Radar Pricing and Promotion Management research was not conducted on behalf of Revionics, but rather is an objective overview of the landscape for retailers and brands considering PPM solutions.
The report, which includes a capability overview, the current market landscape and a vendor evaluation section, identifies Price and Promotion management as a Data/Analytics Technology “Table Stakes” necessity in its retail Capability Framework. As the report notes, “Retailer PPM strategies balance profitability, brand value and customer engagement,” and reminds retailers that ongoing price and promotion monitoring enables retailers to drive both online and in-store sales.
The report provides a comprehensive guide of vendors whom retailers should partner with for price and promotion management-related capabilities. The report notes, “Market leader and PPM specialist Revionics offers the broadest set of industry-proven pricing solutions, ranging from price intelligence for both retailers and brands to advanced price optimisation tools (including both rules-based price management and AI-powered data modelling).”
The report’s authors distinguish between rules-based price management systems and more sophisticated advanced price optimization solutions, which “provide the automation benefits of a rules-based system, while incorporating AI data science to generate far more profitable price recommendations that avoid sacrificing customer loyalty.” It emphasizes that “science-based solutions apply ML algorithms to vast market datasets in order to incorporate highly accurate demand sensitivity into predictive pricing models and optimise a far greater range of performance metrics.”
As an example it cites Revionics price optimization: “Revionics’s industry-leading science-based price optimisation solution provides cutting edge analytics via an intuitive dashboard, in which highly customisable and iterative forecasts are designed to highlight all the factors impacting price recommendations, down to the SKU level, in order to eliminate any “black boxes” and empower users to develop more honed price optimisation strategies.”
The report includes a vendor landscape snapshot:
Seeing how AI-driven price and promotion optimization capabilities are helping retailers worldwide deliver powerful business impact, we couldn’t agree more with the authors’ recommendation: “Pricing & promotion management should be immediately prioritised because of its critical role in generating revenue, brand value, and consumer loyalty.”
Digital Radar: Pricing and Promotion Management, PlanetRetail RNG, October 2018.