What is promotion optimization Promotion optimization is the process of designing and refining retail promotions to maximize their financial return. Instead of running discounts based on habit or calendar defaults, promotion optimization uses data to determine which products to promote, at what price, and for how long. Why promotion optimization
Definition Basket affinity is a retail analytics concept that measures the likelihood of two or more products being purchased together in the same shopping basket. It highlights statistically significant co-purchase relationships across transaction data to reveal which product combinations naturally bundle in customer behavior. Why it matters Basket affinity turns
Definition Promotional incrementality measures the sales lift solely caused by an offer. It isolates volume that would not have occurred without the discount from sales that would have happened at full price. Why it matters Retailers use this to determine if a promotion created new value or if customers simply
Definition High-Low pricing is a retail pricing strategy where products are regularly offered at a high standard price, then temporarily discounted through promotions, before returning to the original price. Why it matters High-Low pricing is one of the most widely used strategies in retail. When executed well, it creates urgency,
Definition Everyday Low Price (EDLP) is a pricing strategy where retailers set consistently low prices on products over time, rather than cycling through regular prices and promotional discounts. Why it matters Everyday Low Price simplifies the shopping experience and builds long-term consumer trust. Instead of waiting for sales or clipping
Definition Margin erosion happens when a promotion drives sales but reduces overall profitability because the discount and associated costs outweigh the incremental gains. Why it matters Promotions are meant to generate growth — not just volume. When margin erosion goes unnoticed, retailers may see strong top-line results while profit quietly
Definition Deal management is the structured process of planning, negotiating, executing, and tracking promotional deals between brands and retailers. Through effective deal management, each promotion is aligned with business goals, optimized for profitability, and efficiently executed across stores and digital channels. Why it matters Effective deal management helps prevent margin
What is Category Management? Category management is a retail strategy where products are grouped into logical “categories”, each managed like its own small business. Instead of looking at items individually, retailers manage the entire category, such as snacks, pet care, or household cleaners, to improve sales, margins, and the overall
Definition In retail, ad planning is the process of organizing, scheduling, and optimizing promotions across stores and channels to support merchandising strategies, align with business goals, and maximize sales. It includes selecting the right products, timing, and promotional formats to drive the best results. Why it matters Effective ad planning
What is Dynamic Pricing? Dynamic pricing is a strategy where product prices are adjusted in real-time based on market conditions, customer behavior, and business objectives. Instead of fixed prices, retailers use dynamic pricing to respond to changes in demand, competition, inventory levels, and external factors such as seasonality or special
