Importance Of Price
Leveraging AI-Image Recognition Technology to support Revenue Management
Defining Revenue Management
Revenue Management is a relatively new function across the broader CPG Landscape. Typically reserved for commodity driven categories such as dairy, meat and coffee where 10-12 pricing changes a year are normal, Revenue Management departments have grown in popularity across major CPG companies in beverage, breakfast, and cleaning to name a few. The organizational investments from companies in building teams that understand the impact of price is warranted given the millions of dollars at stake from every penny.
Revenue Management Professionals need to “See” the pricing at retail to understand the impact shelf pricing has on their items. Today, this is no easy task. The role of price for Retailers has become very strategic as the need for store or market specific pricing becomes more important to both compete with the retailer across the street and maximize profits. This doesn’t even consider poor execution of pricing promotions and point of sale materials that impact sales velocity. The variability of price makes it nearly impossible to accurately capture shelf pricing using manual surveys. Begging Sales to capture pricing surveys can lead to incomplete or no work at all. If syndicated data is being used, prices are typically averaged and delayed up to a month based on the data package.
Maxerience has you covered with Store360. Leveraging AI-Image Recognition, Maxerience can autonomously capture shelf pricing, in real-time at scale from a picture that is likely already being captured through normal routines. Business rules engines can be developed that help automate pricing segmentation, identify incorrect pricing and competitive pricing. All needed to understand price elasticity completely.
Store360 Track all execution from primary shelf, off-shelf display, point of sale material and pricing.
Customer Dashboards. Organize “BIG DATA” captured at retail, across a given retailer, retail channel or market into customizable BI reporting dashboards. Data can be integrated into CRM tools such as Salesforce, Hubspot and others.
- Capture greater pricing detail without bias of manual audit
- Real-Time reporting for price correction, dynamic pricing segmentation and competitive analysis.
- Scale data to capture all stores rather than arbitrary cross-sections.
- Eliminate pricing survey requests