When the 2nd Largest F&V and groceries retailer began facing major revenue leaks due to delays in swift competitor price prediction, price optimization, identifying product unavailability, and the hassle of managing massive pricing teams, they decided get on board with BRIO– a scientifically designed, robust, AI-powered price optimization and prediction tool that helped a number of retail clients plug revenue leaks.
Our robust team of pricing prodigies, product analysts and full-stack developers took a download of the customer’s requirements and began with examining their website health, product availability, and competitor pricing and found a series of unforeseen blind spots that were causing massive leaks.
The First Step was to Identity the Blind Spots…
We got our grey cells running and began identifying, analyzing and designing strategies that would help them plug revenue leaks, creating a compact yet effective pricing team and boost their sales.
Business Challenges
Lack of swift repricing strategies was just the tip of the ice berg when it came to the problem areas of the companies. After probing further and procuring more information on the subject we also identified the following challenges.
Challenge 1: Manual tracking of Competitive Pricing
Manual tracking of competition pricing was slowing down the entire process of smart re-pricing. By the time the pricing team identified a change in the competitors prices the prices would be revised. And just imagine this was just one product whereas the f&V retailer has over 700 products that need to be tracked, along with their multiple competition. Since their competition was using AI-powered tools, they were able to do this with maximum speed and minimum human intervention. And that’s not all, a lack of AI-smart repricing tool slowed down the client thus making them lose a number of sales per day sometimes per hour
Challenge 2: Lack of Stock Insights – Inventory Planning and Assortment Depth
A major chunk of sales was being missed out because of lack of product inventory and assortments. Every time a potential buyer came to the website they wouldn’t find the desired product thus causing a loss of sale. The problem wasn’t that the brand lacked inventory, the problem was the lack of knowledge about the absence of the inventory or assortment. Inventory and assortment planning was a major problem for the company as their products had a low shelf life. If the products weren’t sold out at the earliest they would decay and cause a major loss to the company.
The next problem was…
Challenge 3: Delays in Price Prediction & Optimization
The above two problems caused massive delays in price prediction and optimizations. Lack of stocks and inventory and manual tracking of competition pricing hindered the price optimization. And when a company is unable to keep their prices competitive they quickly begin losing sales. Revenue leaks is always an amalgamation of a number of problems that need to be fixed together. That is why we came up with another solution that enabled them to identify competition inventory based on which they were able to design revenue generating pricing strategies.
So here’s what we did to fix the problems…
The 6-Step Smart Repricing Resolution
After comprehending the complexities of the issues we came up with the following solutions –
#1 Near Real Time Data
The first step was to make the competition’s data easily accessible and available to them on their fingertips. BRIO enabled them to track their competition inventory status, ratings and reviews. It also enabled them to check for competition pricing strategies, discount grips, and competitions business strategies.
#2 Insights that help take Pricing Decisions
Our intelligent bots pulled out historical data about the products, prices, assortments, inventory and customer behavior that give deep business and pricing insights that helped them understand where they were lacking. This helped predict, and create modules for their inventory planning.
#3 Module 2 of BRIO – Rule-Based Pricing
Brio has three modules – Module 1: Competition Intelligence, Module 2: Rule Based Pricing
and Module 3: AI. Rule based pricing enables clients to set pricing strategies that allows the module to increase or decrease the prices of the product automatically. Since most retailers do not have the appetite for AI in the retail sector, we recommended rule based pricing to them.
#4 Check Competitors websites for Newly added Assortments
The first step we took towards fixing revenue leaks was providing them a feature that enabled the client to check for newly added assortments on the competitor’s website. This helped them identity what was working well, which types of assortments were preferred by buyers and which inventory and assortments needed to be added to their website, thus plugging revenue leaks.
#5 Demand Forecasting based Price Recommendation
Another great feature we introduced was demand forecasting based price recommendation. Demand varies from month to month, season to season, and occasion to occasion which means the prices of the products should also vary accordingly. For example if the client wanted to sell mangoes in the month of April-May, BRIO was able to Here are bots are able to predict the demand based on historical trends, rate of sale of inventory and current market situations.
#6 Competition Price Report
By sending daily reports with detailed insights like product level information, CHL, and other informative updates on competition pricing, the client was able to be on top of their smart repricing strategy.
And finally we launched our latest product update through BRIO 2.0 – The Price Write, that allows our scientifically designed intelligent bots to set the prices without any human intervention. Earlier the client needed to approve the optimized prices before they were officially changed in the system, but now the approval plug has been removed and these repricing strategies are being directly deployed by artificial intelligence and machine learning!
With custom identification, quick analysis and smart customization we were able to help India’s 2nd largest F&V and grocery retailer, acquire SPEED and SCALE their business to new heights by leaving pricing to AI-powered bots.
To know more about BRIO, feel free to book a demo or contact us at info@sciative.com
