The bleeding bottom line
As demand patterns and price sensitivity became critical, this retailer’s ability to liquidate piled-up stock started impacting the bottom line. Across their 100+ stores in the US, the challenge was very real. The inability to anticipate demand spurts and to price competitively vis-a-vis other retailers in the neighborhood further aggravated the situation. The retailer wanted a “just right” solution that they could afford to deploy without significant capital investments but could instantly provide results. That quest was not meant to be easy.
The devil in the details
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 – both at a reporting and analysis level. Unifying the data ecosystem was expected to provide greater clarity with better decision intelligence. The dynamic demands of pricing meant that decision intelligence needed to be directed in real-time. The ability to update price changes across all the stores, and dynamically update pricing in accordance with the changing market conditions could well be the answer.
Price right with AI
Hypersonix deployed an AI-driven pricing solution for the retailer, allowing them to integrate and account for all data sources, competitor pricing, weather, seasonality, events, operating costs, inventory availability and more.
Each store manager could use AI/ML to discover a location-based, weekly optimal markdown price that would move all perishable products before they expire, delight their customers with a great price, and maximize revenue. In addition, Hypersonix allowed managers to respond to market conditions in real-time, offering personalized assortments that are in line with the core values of their key consumers.
Increase in sales and customer loyalty
Within weeks of implementing Hypersonix, the retailer witnessed a steep incline in sales by 30%, and steady growth since. The accuracy of data delivered went up to 90%, along with 2x efficiency gains. Hypersonix’s pricing recommendations allowed for 7 to 9% lower prices for the customers, which reduced customer churn by 50%. Intelligent insights and recommendations in real-time also allowed data analysis teams to make better decisions on promotions, which increased footfall in stores across the 9 states by over 120% in 2 months.