Enabling retailers to better plan and adjust pricing based on climatic or seasonal changes, resulting in precision pricing for optimal financial performance
ROSEVILLE, CA – March 27, 2012 – Revionics, Inc., the leading provider of retail life cycle price optimization solutions which are optimizing 30,000+ retail stores weekly, and its partner, Planalytics Inc., the singular global source of Business Weather Intelligence®, announced today enhancements to its weather-driven demand intelligence feature, which is integrated into Revionics’ cloud-based Life Cycle Price Optimization suite that includes base,promotion and markdown pricing management and optimization solutions.
On a weekly basis, weather only repeats itself 20% of the time from the previous year; therefore, if retailers are relying on just historical weather events and data, then they will not be accurate in their pricing forecasts and decisions. In addition, weather is the one external variable that creates opportunities for retailers by helping drive consumer demand. Due to this market need, Revionics and Planalytics forged a partnership in 2009 to develop a solution that would help retailers be more “spot on” with their weather-driven forecast and pricing strategies.
“Our partnership with Revionics allows us to help their customers understand how weather impacts consumer demand and spending across time, region and product category,” stated David Frieberg, Vice President of Marketing for Planalytics. “Equipping retailers with this type of weather-driven data and insight, ensures their pricing decisions are more accurate, which will drive higher sales and profits.”
One of the benefits of this enhancement is the ability to incorporate historic weather effects into the demand model to adjust pricing based upon the impact of weather. This provides retailers with cleaner and more accurate elasticity and seasonal parameters by removing the “noise” that weather anomalies might have caused in the data. The benefits include improved forecasting, resulting in a stronger financial performance. Specific highlights of the enhancements include:
- “De-Weatherization” of Data: A proprietary optimization process that objectively removes the influence of weather from historical sales of products by market and time, which eliminates the error inherent in historical weather-driven sales curves.
- On-demand Weather Information: Provides the ability to graphically view historical and future weather trends in order to simulate different business scenarios for pricing, promotions, or markdowns.
- Full Transparency/Visibility: Allows for additional insights into how weather is impacting pricing such as the historical impact of weather on elasticity, seasonality and demand. In addition, provides insight into decomposition of elasticity; how much of it is due to raw demand and how much to one-time weather events.
“Through our partnership with Planalytics we have been able to meet a strong market need for accurate and reliable weather-driven demand intelligence that fuels critical pricing strategies,” stated Marc Hafner, Revionics’ President and CEO. “This helps to eliminate pricing errors and creates new sales and profit opportunities for retailers.”
About Revionics, Inc.
Revionics is the leader in delivering innovative predictive analytics for retail life cycle price optimization solutions, including base price, promotion, and markdown planning and optimization. The Revionics solution leverages an integrated demand forecast, enabling a coherent view of customer demand across all decision areas. Our proprietary approach applies advanced analytics and science to predict shopper behavior, empowering retailers to achieve their financial objectives, improve customer loyalty, and make better, faster decisions in today’s dynamic marketplace. Our solutions are delivered on a high performance, scalable software-as-a-service (SaaS) platform. Over 30,000 retail locations across grocery, drug, building materials, convenience, general merchandise, discount and sporting goods stores are priced using Revionics solutions. For more information, please visit www.revionics.com.
About Planalytics Inc.
Planalytics Inc. is the singular global source of Business Weather Intelligence® – the actionable information companies need to understand and optimize the impact of weather on their business. Weather is the most volatile of all external factors affecting business performance and Planalytics helps companies proactively manage this risk. Powered by an unparalleled database of weather’s financial and volumetric impacts, proprietary modeling technologies and market-specific expertise, Planalytics’ Business Weather Intelligence is essential to any company, in any industry, looking to effectively shape strategies, pinpoint opportunities and make more profitable decisions. Visit www.planalytics.com for more information.