Promotions are a persuasive strategy to drive sales and the overall bottom line. Despite how powerful promotion optimization can be for a business’s success, most retailers struggle with promotion management from inception to execution.
Historically, retailers found it challenging to promote the right items, at the right time, using the right price points. However, with the awakening of the omnichannel revolution, retailers have had to add another complicated strategy to the mix that focuses on the customer segment level.
To manage mass and targeted promotions, most businesses rely on past experience and pure guessing – an optimization method that is no longer manageable with the unprecedented volume of data.
Tapping into a strategy achieving promotion optimization that utilizes advanced technology is the future for retailers. Throughout this article, discover:
Promotion optimization involves small or large adjustments to promotion attributes based on data-driven evidence. The purpose of optimizing these promotions is to maximize results.
A retailer may optimize by adjusting the:
Most retailers currently rely on manual processes and multiple systems for managing promotions. With the tools they have available, retailers optimize promotions by:
Though these methods work, they are not entirely foolproof and can be time-consuming. Today, with the amount of data available, and the need for personalization, optimizing promotions can be near impossible without having access to the right tools.
Optimizing promotions with advanced technology is crucial for promotion effectiveness. A technology solution provides data-driven insights by processing all the data, running forecasts on different promotion attributes, and concentrating on the right combination of promotion attributes to meet the desired outcomes.
For a detailed understanding of retail promotion optimization attributes, check out our insights on creating targeted promotions.
This level of complexity and accuracy allows retailers to focus on meeting their business objectives, rather than sifting through disparate data and relying on guesswork.
Capabilities a solution provides:
Results retailers can expect:
Overall, a solution with promotion optimization capabilities allows retailers to align promotions with their business strategy, achieve the highest ROI, and meet their customers’ needs. It is essential for retailers to invest in a solution that can process mass amounts of data and provide accurate and insightful recommendations.
In order to effectively optimize promotions, retailers need to invest in advanced technology. A technology solution provides data-driven insights by processing all the data, running forecasts on different promotion attributes, and concentrating on the right combination of promotion attributes to meet the desired outcomes.
This level of complexity and accuracy gives retailers the space to focus on meeting their business objectives, rather than sifting through disparate data and relying on guesswork.
Capabilities a solution provides:
Results retailers can expect:
Overall, a solution with optimization capabilities allows retailers to align promotions with their business strategy, achieve the highest ROI, and meet their customers’ needs. It is essential for retailers to invest in a solution that can process mass amounts of data and provide accurate and insightful recommendations.
PromoAI puts Promotion Optimization front and center, empowering retailers to make strategic, data-driven decisions. By assessing trade-offs and comparing scenarios, PromoAI helps identify the most effective promotional strategies to meet campaign objectives and align with business goals.
What makes PromoAI stand out from the crowd:
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Promotions play a pivotal role in the success of a product. When promotion management is done strategically, retailers can expect a positive demand shift.
Founded by experienced data scientists and retail experts, Cognira is the leading artificial intelligence solutions provider.
