Online CPG: A major retailer that offered consumer products online was challenged with ineffective pricing strategies and techniques. The company decision- makers acknowledged that they did not understand the demand drivers, could not monitor the marketplace effectively, had little in the way of pricing strategy, and knew it could be improved with analytics.
Working with its pricing teams, we used advanced analytics to expand from a handful of pricing strategy alternatives to a multitude of alternatives that were defined systematically in order to consider the full scope of options. In addition, through our algorithms, the demand prediction of the company's online products improved dramatically, allowing foresight to avoid stock-outs.
Result: 15% higher revenues and improved customer satisfaction by avoiding stock-outs