The Convergence of Data, Strategy, Rules and Science to Arrive at the Optimal Price
Margins are razor thin, and not all products are created equal. Some are greatly affected by competitor price changes and position, while others are not. Retailers are tasked with figuring out how to price items to meet their financial goals, with ever-expanding assortments.
With so many products to price, this is an overwhelming task for most retailers. Often they employ an arbitrary pricing strategy based on gut feelings as opposed to strategy, data and analytics. Those that do have data often do not know what information is important to pricing decisions.
Revionics® Price Optimization blends strategy, business rules, science and data to recommend optimal prices and forecast the effect on consumer demand. With this solution, retailers see how shopper price sensitivity, competitive price positions, cost changes, seasonality and other relevant data points influence profitability, competitiveness and demand.
Along with Revionics® Price Management, Revionics® Strategic Price Simulation and Revionics® Dynamic Pricing, Revionics Price Optimization is part of the Revionics® Price Suite, which delivers solutions for all retailers regardless of current pricing processes or sophistication.
Why Revionics Price Optimization?
- Takes a shopper-centric approach to pricing
- Keeps pace with emerging trends through self-learning demand models
- Prevents the competitive race to bottom, with patented science around competitive response elasticity and sensitivity
- Aligns business strategies with price recommendations
- Transparent results drive confidence and adoption which drives value
- Flexible application across categories, locations, channels and key items
- Delivers sustainable, year-over-year financial benefits
Key Solution Features
Revionics® Price Optimization blends strategy, business rules, science and data to recommend optimal, shopper-centric prices and forecast the effect on consumer demand. This solution helps retailers understand the relevant factors that influence profitability, competitiveness and demand.
Revionics best-in-class capabilities include:
- Predictive and flexible application of out-of-the-box and customized strategies, business rules and constraints
- Competitive, market and weather data integration
- Prices and price investments aligned to category strategies and financial objectives
- Laser focus on key value items and price image
- Brings together competitive and shopper price elasticity
- Prioritizes price recommendations to provide the greatest value when faced with execution constraints
- Detailed forecast of price impact
- Price effectiveness measurements to measure value
- Promotional awareness
- Attribute-based science to support short-life merchandise
Price Optimization Benefits
Revionics enables performance-driven retailers to create a sustainable competitive advantage and undeniable ROI in today’s new retail reality. Our proven SaaS-based pricing solutions offer the speed, transparency and scale that retailers need to achieve Responsive Retail in an era when business strategy intersects with data science.
Revionics® Price Optimization enables retailers to drive improved performance and competitive advantage.
- 2-5% gross margins and 1-4% sales improvements
- Systematically operationalizes a variety of data and insights at speed and scale
- Surgically executes competitive positions while maximizing profit opportunities
- Localizes prices to exploit local shopper and competitor behavior
- Manages the entire assortment across all locations and channels
- Automates the pricing process
- Balances the need to create shopper and shareholder value
Explore More on Price 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.
Revionics solutions deliver usable science that aligns to your strategies with adaptive, self-learning models and transparent results explaining the "why" behind recommendations.