Building on its commitment to deliver exceptional customer service and competitive prices across all products, The Home Depot México has selected the Revionics Price Suite of solutions.
The retailer’s pricing team will leverage the Revionics suite to:
Gain better insights into customer price preferences;
Build more consistent price perception among consumers;
Better compete with both online and brick-and-mortar companies; and
Conduct scenario planning and analytics as the company continues to scale for growth across Mexico.
“We understand that we can better serve our customers if we focus not only on providing great products but on providing everything that our customers need to complete their projects,” said Jose Del Angel, Director of Merchandising Support at The Home Depot México. “The data analysis becomes critical to identify what matters more to the customer, how they respond to our offerings and those of our competitors, and clearly identify products that are project starters and products that complete the project.”
As part of the suite implementation, Home Depot México selected the Revionics Price Management and Price Optimization solutions, and also is leveraging automated analytical services from Revionics, including Key Value Item analysis, elasticity analysis and product affinity analysis. Now that the Home Depot team can plan scenarios ahead of time, the brand can simulate and evaluate expected results before implementing an actual change in price, business rules or strategies.
Working with the Revionics suite, the Home Depot team is seeking to better understand the dynamics of each product category, including how pricing elasticity shifts depending on the competitive landscape in each market. With the retailer continuing its growth across Mexico, projecting a total of 119 stores open by the end of 2016, the team sought to gain a greater understanding of which products could potentially be a better fit for each store.
“As we’ve grown into more markets, including online, our merchandising has grown in complexity,” Del Angel said in an interview with Retail TouchPoints. “Therefore we were looking for a solution that would help us manage our pricing with a more localized approach that would rely much more on data-driven analysis while aligning with our business rules.”
Adapting To Omnichannel Realities
Del Angel stressed the changing retail environment as a major factor in making the move to the Revionics platform, especially as consumers continue to rely more on e-Commerce sites to fulfill their shopping needs. With Amazon becoming a go-to destination for shoppers seeking the best price, brands now must not only set consistent prices across all channels, but understand their competitive positioning to ensure they aren’t driving away shoppers.
“We have to be very flexible and implement changes quickly in order to remain competitive and be the retailer of choice both online and in our stores,” Del Angel noted. “Online is also a fantastic way to empower our customers as they have access to all available choices, prices, promotions and even inventories at the tip of their fingers. Revionics will provide the appropriate tools to turn the available information into actions that will have an impact on our customer’s decision making process.”