December 30, 2016
Algorithms & science to grow the bottom line
’Tis the season for refining your pricing strategies to meet and exceed your customers’ expectations. In the holiday season, how do you determine which profitable pricing changes and new promotions you should focus your energy on?
Using powerful algorithms and scientific methods, it is possible to efficiently mine in-house data and external resources for the business insights required to make sound decisions. Automated, cutting-edge technologies that allow to drill down and discover new dynamic pricing and promotion strategies simply at the push of a button.
If you have been tediously churning data with Excel spreadsheets, hand-input processes and a “last year + x%” forecast, then maybe we should talk.
Imagine not only automating, but also powering up data-driven analysis with such data sets like geographical locations, weather climate, social media feeds, historical sales data, input from staff on the ground, and much more. Leveraging cutting edge predictive analytics to unlock the untapped value of data, and make smart marketing decisions.
Retailer data sets may include a mix of useful sources like sales, consumer history, stock levels, and maybe some market data. On top of what is available internally, the Evo Pricing scientists always augment company data with proprietary and public data sets, providing clients with uniquely tailored data solutions.
The data-driven management revolution
This may perhaps sound hyperbolic, but Evo Pricing has a highly skilled team focused on developing and deploying algorithms to help retailers profitably optimize demand planning, pricing, promotions and range decisions.
The secret sauce to the innovative data management platform, according to Fabrizio Fantini, Evo Pricing’s CEO, is “an evolutionary system, continuously learning from human intuition—that of company managers and customers—and automatically updating its recommendations, much like a Sat Nav reacts to the changes in such fluid variables as traffic, or road and weather conditions.
Nowadays, consumer preference and management strategy are equally fluid and dynamic, and so we have developed similarly sophisticated solutions for retail, just like Sat Navs – but for management”.
Automated recommendations that can feed a broad array of use cases, such as forecasting, measuring pricing elasticities, assessing price change impacts, building insights into local targeting, generating markdown recommendations, and computing the results of each and every promotion. Or just focus on the one “big win” opportunity – depending on the context.
Algorithms learning from massive amounts of data, combined with management’s intelligence and human intuition, an unprecedented combination that yields far more effective results than algorithms alone used to do. The effectiveness of the Evo Pricing approach has been proven scientifically through research with prestigious universities, such as Harvard and MIT.
A successful track record
The Evo Pricing platform is young but has already helped retailers globally predict sales often as much as 50% more accurately. In fact, several case studies show that retailers can improve profit margins by over 30% using Evo Pricing, thanks to the power of its uniquely accurate demand model. Over $200m of bottom line impact to date already, for global retailers, and counting.
Each solution engineered by Evo Pricing is designed to maximize accuracy and returns, feeding into the pre-existing management processes with an unlimited support model, rather than creating disruption and innovation fatigue.
By not leveraging the very best that predictive analytics can offer today, you are leaving money on the table. Can you afford to do that? Get a head start on your competition and unlock the full potential of your data. Contact Evo Pricing today for a free consultation.
About the author
Martin Luxton is a writer and content strategist who specializes in explaining how technology affects business and everyday life.
Big Data and Predictive Analytics are here to stay and we have only just begun tapping into their enormous potential.