Promotional Effectiveness
We are spending big money on promotional activities but who knows what the result is and whether we should continue doing this. Especially in this competitive environment.
The Client
Client Need
Our Client – a retail store with representation in the Eastern Europe – has a quite of variety of products offered on their shelf collection. The struggle comes when they want to increase sales through promotional pricing, especially in the environment of strong competition. The Client needs focus and framework of expectations based on the variety of efforts.
Our Approach
A stepwise advanced analytical approach was applied towards this pain area. A single product for a specific store focus was initiated to understand business dynamics, get familiar with the data and test the data science solution
Only after the POC phase was completed the solution was scaled allowing more global effect and additional measures for price promo KPIs.
The Solution
The solution followed these steps:
- Understand requirements;
- Gather and deep dive into the data;
- Segmentation for POC;
- Measure promotional effectiveness;
- Identify volume uplift drivers;
- Determine the competition effect;
- Solution round-up and scalability as next steps.
Results
Optimize Client’s pricing decisions to maximize the promotional campaigns’ efficiency;
Better understand the determinants of sales volume increase and put effort in that direction;
Determine the effect which competitors exert on sales and take timely measures.
