Retail — Promotion Analytics

Problem

Retailers rely heavily on promotions and offers to generate higher returns. Certain promotions are well received by customers and creates demand for the product and certain promotions are just created and nothing happens since. The need for promotion analytics based on the history of promotion data present would help to identify which factors of the promotion induced more customers.

Challenges

• No insights on the existing historical promotion data
• Failure to accept market dynamics, on underpricing by competitors
• Over reliance on promotions

Result

• Provides category guidelines such as most incremental display types in order to optimise promotion plans
• Calculates the incremental performance of historical promotions and the contribution each tactic has delivered
• Identifies the long tail of promotions that are sales and/or margin diluting