Pricing Intelligence: How A Leading eCommerce Retailer Increased Profitability by 7%

Background

As an eCommerce retailer, they wanted to ensure they had enough product to meet changing demands. But as demand patterns and price sensitivity became more critical, their ability to liquidate piled-up stock started impacting their bottom line. They needed a better process for anticipating demand and understanding the price sensitivity of their key value items.

Industry: eCommerce

Hypersonix Products: ProfitGPT, Pricing AI, Inventory AI, Competitor AI

Goals: The ability to better anticipate demand cycles, price competitively, and understand the price sensitivity of key value items.

The bleeding bottom line – The Devil is In the Details

As demand patterns and price sensitivity became critical, this eCommerce retailer’s ability to liquidate piled-up stock started impacting their bottom line. The inability to anticipate demand cycles and price competitively with other retailers further aggravated the situation. The retailer needed a solution they could afford to deploy without significant capital investments but that could instantly provide results.

A deeper analysis of the way data was managed within the enterprise revealed multiple inconsistencies. Data was highly disaggregated across the enterprise with accuracy issues at both the reporting and analysis levels. Unifying the data ecosystem would provide greater clarity with better actionable intelligence. The dynamic demands of pricing meant that accurate insights needed to be available in real-time. The ability to dynamically update pricing in accordance with the changing market conditions was critical.

Generative AI Insights to Help Price Effectively

Hypersonix deployed ProfitGPT through an API connection, quickly allowing for the integration of data from different sources and streamlining the processing of information, including competitor pricing, inventory availability, and more, in one single source.

The machine-learning and generative AI algorithms analyzed the data to determine a weekly optimal markdown price that helped price perishable products to move them before they expired. In addition, managers had the right data and insights to respond to market conditions in real-time, offering personalized assortments that were in line with the needs of their key consumers.

Increased Sales and Stronger Customer Loyalty

Within weeks of implementing Hypersonix, the company witnessed a sales increase of 30%, and steady growth. The accuracy of data delivered went up to 90%, along with doubling the efficiency of processing data. Hypersonix pricing insights enabled them to lower prices by 7% to 9%, which reduced customer churn by 50%. Actionable intelligence and insights in real-time allowed product teams to make better decisions on promotions, which increased footfall in stores across 9 states by over 120% in 2 months.