Precima: Empowering Retail with Consumer Driven Insights

Precima: Empowering Retail with Consumer Driven Insights

Brian Ross, President, PrecimaBrian Ross, President
Against a backdrop of currency fluctuations and a heightened focus on Omni channel retailing, Precima is helping market leaders weather immense pressure related to the challenges associated with driving sales, assortment, and price while enabling customer engagement through personalization.

“Today’s retailers are under immense pressure to respond to rapidly increasing competition, multiple consumer choices, and elevated transparency enabled by mobile,” says Brian Ross, President of Precima. Adding, “Successful ones are leveraging our solutions to gain actionable insights and drive measurable increases in sales.”

Through the integration of customer and retailer insights, Precima’s modeling helps retailers minimize sales risks and prioritize best performing products. The company’s platform lends analytical horsepower and highly specific pricing models for large numbers of categorized items, generating millions of price recommendations on a daily or weekly basis. The insights can then be leveraged throughout the organization, from operations through to merchandising and marketing, to better connect with the customer at the speed of retail. “We deliver highly visual, intuitive, interactive, and dynamic insights, directly to your desk. You’re empowered to make smart decisions for assortment, promotion, and pricing,” asserts Ross.

Ross differentiates Precima by its focus on applied analytics and its vision and purpose to help retailers and manufacturers worldwide better understand their customers and use those insights to improve sales and profits. He adds, “Our people is the real differentiator”, noting the PhDs and depth of bench strength of the Precima team who continue to deliver on retail partner goals, including around competitive advantage.

Case in point: A Precima partner and leading retailer, gained price leadership among its competitors and secured strong sales growth and healthy margins, by effectively setting best competitive price for each item on weekly basis.

We deliver highly visual, intuitive, interactive, and dynamic insights at the speed of retail, right at their desk

Ross elaborates, “We started by understanding customer response to price building price elasticity models for every single item in the store.” The Precima team then modelled the impact to volume, sales and profit for every item – at every price. Competitive prices across all key competitors were then sourced and optimization was then factored-in. Using the company’s modeling platform, the Precima team then iteratively simulated prices for every item to find the set of prices that would maximize sales and maintain profit, while ensuring they were cheaper than the competition. The result? According to Ross, “Precima helped deliver a 2 percent increase in sales, while slightly increasing profit and ensuring prices were lower than the competition.”

Precima’s supplier collaboration solution also brings together retailers’ and suppliers’ needs and desires to enhance Return of Investment (ROI) through greater transparency. This common platform fosters greater collaboration when reviewing, determining, and implementing key strategies for promotional and strategic decisions that can be leveraged across the enterprise, while also playing a key strategic role in driving enhanced customer loyalty.

This exponential improvement in personalized promotion and price optimization helps retailers accomplish strategic, financial, and competitive objectives reflecting their unique market positioning while supporting customer loyalty goals; ultimately, empowering retailers with customer driven insights.

Retailers have an increasingly vast volume of transactional data at their disposal. Precima’s vision is to turn constrained decision making and poor visibility into a thing of the past, while helping retailers transform, including by leveraging ever evolving consumer trends and technology. Precima’s performance-based model is evidence of just how serious they are when it comes to helping retailers and manufacturers win. “We regularly deliver response rates over 70 percent and sustainable increases in sales of over 2 percent.” In this environment you need a partner that can help you be entrepreneurial, flexible, and fast,” concludes Ross.