In Part 1 of this blog, I discussed the macro-environmental pressures on retailers in Australia and worldwide, and how consensus at the Retail Leaders Forum is that agility favors those retailers who are successfully future-proofing. Here we’ll dive deeper into successfully adopting a responsive merchandizing model.
The Path Forward
I hear recurring themes from retailers looking to tackle these challenges. They essentially distill down to two distinct but highly complementary areas of focus:
First, technology solutions that enable retailers to enact their pricing and promotional strategies in real time. We see retailers of all stripes, from traditional brick-and-mortar retailers to our pure-play online retail customers, pushing us to help them to be more up-to-the-minute with market awareness and real-time response to changing conditions.
- state-of-the-art pricing science, guided by business strategies and rules
- up-to-the-minute competitive awareness and demand forecasts
- adaptive demand models that learn and respond to changing demand signals
- the ability to automatically detect, alert, and respond to changing market conditions
Second, analytics that combines the art and science of science and data intelligence that help retailers to be not only faster, but also smarter about how they execute on prices and promotions. We like to say that the ability to act quickly in the marketplace is only as valuable as the strategy and insights driving the actions, and we have seen an increasing demand for analytics to help retailers be more strategic and results-focused in pricing and promotional activities.
This means analytics to identify key image drivers – the products that are most responsible for shaping customer price perception. We use analytics to help retailers craft pricing strategies focused on which products and categories should be margin producers versus those that are more effective at driving traffic or establishing customer price perception. We’ve been increasingly focused on delivery of real-time competitive analytics to help retailers understand which competitors, be they online or brick-and-mortar, are relevant to their businesses so they can be more surgical with their competitive pricing strategies.
Leverage Retail Business Knowledge
By tapping unmatched science and unmatched technology innovation to execute actionable data and optimization to deliver real-time price recommendation. This frees retailers to focus on leveraging their business knowledge and insights to steer and shape customer interactions with agility, driving better customer engagement and improved profitability.