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Pricing

It’s no longer OK to price a product once and mark it down once. Retail pricing is now a volatile area in retail. Often, merchants must be on their toes and ready at a moment’s notice to update product prices in order to remain competitive. New pricing solutions are helping retailers determine initial product pricing, then figure out how to adjust and readjust pricing during the entire product lifecycle.

What Retailers Learned In 2018: It’s All About Customer Data-Driven Strategy

At a recent industry event, I quipped that this is “the best of times and the worst of times” for retailers. Implicit in my comment — which was a paraphrase of the opening lines of A Tale of Two Cities, the Charles Dickens classic about the French Revolution — that the retail industry is undergoing a revolution of its own. Never mind the “retail apocalypse.” What retailers have begun to realize is that the demise of their businesses is not a foregone conclusion. This is a time for retailers to take action, not sit idly on the sidelines. In 2018, we saw more retailers take action by equipping themselves with the most important weapon for battle: customer strategy fueled by customer data science. Why is this happening? It could be that the ever-looming threat of Amazon, which has ventured boldly beyond e-Commerce and into physical spaces as well, with the steady spread of its 4-star stores throughout the U.S. It could also be the emergence of grocery discounters that are forcing retailers everywhere to rethink pricing and overall value propositions for customers. It could also be the example of retailers of all sizes to embrace the art and science of…

Predictive Analytics: Optimizing Pricing And Promotions In E-Commerce Means Combining Tools

Most retailers are already engaged in data analytics and predictive modeling. Today, using data to predict more successful outcomes — ultimately leading to increased sales — is not as mystifying a concept as it was even a year ago. But with a market being upended by an omnichannel imperative and consumer demand for instant gratification, how can e-Commerce retailers continuously and dynamically test out business models and strategies, refresh their questions and findings, and find out what works, particularly when it comes to pricing and promotions? Advances in AI have a role to play here. Machine learning is very powerful in point prediction, point estimates in price — the goal being to make sure you are dynamically pricing. And it’s very effective when pricing at speed. It can help improve recommendations based on a continuous learning loop, and it’s particularly applicable in price and promotion optimization.

E-Commerce’s $200 Billion Problem: One That AI Can’t Solve

Anytime I read the trades, glance at news headlines, or talk to other executives, AI seems to be the solution to all of our problems. Everyone is talking about AI. Emerging tech companies now have AI solutions at their forefront, but for companies looking to expand their e-Commerce reach globally, especially within emerging markets, AI is not the solution. When it comes to e-Commerce issues, specifically at the local level — frequent cart abandonment, low payment conversion rates due to network instability, consumers’ inability to pay with the right credit card — we can't wrap them in an AI blanket. These problems can only be solved through offering locally-relevant solutions that minimize friction at the checkout.

How A 40M Decrease In Email Promos Increased Revenue At TUMI

Working to deliver a more relevant customer experience, TUMI was seeking to consolidate business functions “that have a direct relationship with the customer on a 1:1 basis,” noted Charlie Cole, Global Chief eCommerce Officer at Samsonite and Chief Digital Officer at TUMI. “We thought all these functions should live in one place,” he explained, “including online analytics, customer service, sales (retail/online/outlet/drop ship), warranty, repair, email send/open/click, social graph data…” Finding the right solution was a challenge, Cole explained: “We didn’t necessarily know where in the vendor landscape we were going to end up, so we talked to all sorts of partners, including email, personalization, more traditional CRM, etc.” After a thorough search, Cole and his team landed on the Customer Data Platform (CDP) from AgilOne. In this Q&A, Cole shares his learnings and results from the implementation.

Marks & Spencer Leverages Predictive Analytics Platform For Buying, Pricing Decisions

  • Published in News Briefs
Marks & Spencer (M&S), the UK-based department store, has expanded its partnership with First Insight, a platform designed to help retailers make better product development and pricing decisions. M&S has been using First Insight’s predictive analytics to support design, buying and pricing decisions on categories including apparel, lingerie, footwear, accessories,…
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Top Predictions For AI, Big Data, Pricing By 2025

I’ve been in the retail pricing industry for the past 40 years as an entrepreneur and tech innovator. I wanted to share with you where I think AI, Big Data and Algorithmic Retailing are headed in the next few years, and I’m going to make five predictions about the state of the industry and what it is going to look like in 2025. [To view the video of Ken’s predictions, go to: http://www.engage3.com/5-big-predictions-for-the-retail-industry/]

As Tesco And Carrefour Create Strategic Alliance, Will Grocery ‘Price Wars’ Hit Europe?

European grocery giants Tesco and Carrefour have partnered to “create a long-term strategic alliance” designed to improve product quality and choice and to lower prices for consumers. The agreement will allow both companies to strengthen their negotiations with their suppliers and create “significant opportunities” for them, according to a joint…
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Supreme Court Sales Tax Ruling Hits Small Online Players, Boosts Brick-And-Mortar

A U.S. Supreme Court ruling may put a larger burden on even the biggest e-Commerce players by eliminating one of their biggest advantages — pricing. Online-only retailers will now be required to collect sales taxes even in states where they don’t have a physical presence, the Court ruled. In a 5-4 ruling against Wayfair, Overstock.com and Newegg, the justices overturned a 1992 Supreme Court precedent from Quill Corp. v. North Dakota. Quill had barred states from requiring businesses with no "physical presence" in that state — such as out-of-state online retailers — to collect sales taxes.

The Ongoing Saga Of Food Waste In Grocery: Standardized Food Date Labeling, Dynamic Pricing Could Save the Day

We’ve known for quite some time that food waste is a growing global issue, impacting the world’s economy and environment. The U.N. Food and Agriculture Organization reports that processing wasted food generates 3.3 billion tons of greenhouse gases annually worldwide. In the U.S. alone, up to 40% of the food produced ends up uneaten and tossed to the trash. The Natural Resources Defense Council tells us that the amount of food thrown away every year in the U.S. equals approximately 20 pounds of food per person, every month!

59% Of Shoppers Won’t Buy Items With ‘Arbitrary’ Prices

When shoppers perceive that an item’s price is unfair or arbitrary, a majority (59%) will refuse to buy the product. However, they will accept price increases or decreases that remain within a “fair” range, particularly if the changes are based on data science, according to a Forrester Consulting study that examined consumer attitudes toward pricing and promotions. An original survey in May 2017 queried 1,250 shoppers in the U.S., UK, France, Germany and Brazil and Forrester followed up with additional research in April 2018. Key findings included:

GroundTruth Launches Performance-Based Pricing Models Suite

GroundTruth, a global technology platform designed to drive offline visits and sales by leveraging location as the primary source of intent, has unveiled a new suite of performance-based pricing models called True Performance. The solution is designed to leverage location-based marketing to allow advertisers to pay only for results or actions that precisely meet their business objectives.

4 Market Conditions Retailers Must Understand For Successful Sourcing

“Source. Sell. Repeat”. This, in a nutshell, is what e-Commerce — or any commerce for that matter — is all about. For thousands of years, people have made a living by sourcing products and selling them. But while the basic idea remains the same, the tools of the trade change constantly. In fact, the pace of change keeps accelerating. For the past decade or so, data has been the name of the game. With the ability to track the entire workflow and break it down into components came the ability to understand the weak points in the funnel. This understanding is the first step on the way to optimization. Even minute changes can increase margins and contribute to profitability or reduce inefficiencies.

Russian Hypermarket Chain Sharpens Pricing Strategy

  • Published in News Briefs
Following a successful pilot in 2017, Lenta is sharpening its customer-focused pricing approach by deploying Revionics Price Optimization across all of its hypermarkets and supermarkets this year. The retailer will be positioned to leverage advanced analytics services powered by AI and machine learning, which includes:
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