Promotion evaluation and planning is a complex process, particularly when it needs to consider a huge number of internal and external variables. Learn in this video how AI makes the promotion planning process quicker and more accurate with Symphony RetailAI’s Client Director, Jonathan Tye-Walker.
- Download paper: Make Promotions Management Profitable – 7 ways AI is transforming promotions
- Buyers guide: 4 factors to consider when selecting a promotion planning and evaluation solution
- Read Video Transcript
In the field of promotional planning, promotional evaluation and promotional forecasting, the complexities that we have felt, and all of our clients is that the sheer number of variables, both internal and external, demand influencing variables, makes that planning process incredibly complicated.
The way we address these problems at Symphony RetailAI, is first of all on the evaluation side of things. We look at every single promotion at a SKU, store, day level and we evaluate it through three lenses; sales impact, margin impact and customer impact, which then allows us to create a very rich data source upon which all of our forward looking forecasting, planning and optimisation execution work can be built. When we execute this evaluation across our client base, we typically see between 25% and 40% of all promotional activity is ineffective, meaning that a promotion is failing on either sales, margin or customer impact.
That data lake is then taken forwards and is the base for the artificial intelligence. The more history we feed into the artificial intelligence algorithms, the AI algorithms, the better they become over time. That’s fundamentally the reason that the machine is so powerful. When a retailer is doing promotional planning for a specific category, to have that basis, helps them not only be able to forecast sales…sales return, margin return and volume return a lot more accurately, but utilising the capabilities of the artificial intelligence, helps them do things a lot quicker. The pattern recognition work, the speed of computation that is all being built into the work that we’re doing, is really helping retailers drive return on investment for their plans a lot quicker.
I’m working with retailers currently that are implementing the evaluation modules. We have retailers that are looking to then start to take that evaluation and build it into their planning work as well. So we’re really excited about helping our clients do more, do it faster and do it with a better accuracy going forwards, and essentially help them identify that magic, golden button of, can you just give me the answers I can start with, from a promotional perspective?