Could we envisage a world without promotions? Most probably not!
After all consumer goods (CG) companies invest circa $500b usd annually in promotions, which are responsible for several different dynamics in the marketplace, with greater impacts in consumer habits.
The key fundamental question is: how effectively spent are those $500b?
Most organizations use their best judgment and previous experience to make decisions on what, how and when to promote. Once those are made, the only thing possible is to measure their results afterwards, where eventually the decision team is already looking for the next promotional wave and less focused on the lessons learned. In the end, perhaps not at all an effective investment, which may also be associated with an unrecovered loss of time and a financial opportunity missed.
Fact based data decisions should now become the new normal. In times like we are now living, where markets and consumer behaviors are rapidly changing, past experience cannot be the only pillar for decisions. Since promotions represent the second largest item in CG financials, right next to the cost of goods manufacturing, every single dollar that will be better invested in promotions will have a direct positive impact on the EBIT of the company.
Our Revenue.AI cloud platform addresses this with a proven track record of having increased sales in +1.6%, and an even higher impact on gross margin.
The Tailored Promotions module simply brings the best of Artificial intelligence and Machine Learning techniques, combined with a new user experience that allows the business to analyze, simulate and even communicate in natural language with the solution.
The full combination of market & competitive data, POS & sales data, weather forecast, demographics, demand and price elasticity, among others; brings to the users a full perspective of what are the key drivers and highlights the new opportunities.
Once passed this phase, each user can simulate the impacts of future promo decisions. Using in intelligent assistant he/she can even interact with the toll, which in return will challenge him/her by highlighting the key areas for improvement. In other words, the platform not just respond to the user requests, but it complements it by challenging them with different points of view as well. At the end of these iterations and full promo cycle, the tools will facilitate the planning activities for future promotions.
The key fundamental ingredients for success in our clients, who quickly adopted a very effective promotional practice, have been the tool, the practical approach and experience on having done it multiple times before.
Revenue.AI’s own consulting team of industry experts helps guiding the clients on every step of the way from adopting best practices, data needs + gathering & cleansing, applying ready-made business templates and data science; all combined in an integrated cloud solution and a proven methodology to embrace, adopt and roll-out this new effective promotion practice.
We believe that, especially in current times, using data driven solutions to increase the efficiency of organizations is one of the main areas that are bringing immediate returns.
Very soon, we envisage that CG businesses being effectively supported by AI will no longer be an option – they really must embrace it.