Revenue and Margin Management
Build machine learning based models to increase revenue and margin
Assortment optimization
- Goods grouping according to the importance for the customer (key value indicators, back basket, any goods, unique assortment, etc.)
- Clustering profitable products according to customer demand
- Categorical analysis of SKUs, customer needs trees, identification of analogues / substitutes within the purchase mission
- Interpretation of the most significant factors in forecasting that affect the model accuracy.
- Identification of affinitive and complementary goods
Pricing
- Regular pricing policy optimization for regions, channels and SKUs
- Creating promo calculators and simulators taking into account the effects of cannibalization, representation and other factors
- Finding the potential for price differentiation for regions, customer segments and seasons
- Compare channels by revenue, cost of sales and find areas for pricing improvement
- Optimization of promotional activities within the category and cross-category based on the assortment deep analysis
- Measuring price elasticity
- Studying the impact of marketing promotions on sales results
Forecasting marketing promotions
- Forecasting of retail turnover, frontal margin and other retail indicators, taking into account promotions
- Comparing actual sales to optimized sales using the marketing promotion calendar
- Optimization of promotion calendars at levels: points of sale, regions and products
- Compare channels by revenue, cost of sales and find areas for pricing improvement
- Estimating the promotion effect on sales volume
Cost management
- Costs allocation for the promotion channel and SKU
- Finding opportunities for additional investment in promotion
- Market mix modeling
- Compare channels by revenue, cost of sales and find areas for pricing improvement
Marketing promotions
- Customization of the promotions calendar to the point of sale level
- Calculate the real increase in sales due to promotions
- Maximizing sales for the promoted product group
- Minimizing the cannibalization of marketing promotions
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