Use the past to inform the pricing decisions of today
Price Optimization now supports the usage of historical data for strategies. This new feature provides the capabilities of storage, grouping into specific time bands, calculations, and confidence score for all of the SKUs you wish to provide.
We can ingest up to 26 months of historical data through our new ingestion service
The ability to ingest, store, and craft strategy structures around third-party sales attributes means you will more effectively compete with the market, capturing additional sales and improving margins.
Your ability to access current and look-back periods for specific time bands of data (15 days, and 1/3/6/9/12/13 months) mean you can price based on MoM and YoY periods, among others.
We will also be able to identify missed or invalid data uploads, improving overall data quality with our new Confidence Score.
How do I use sales data in my strategies?
First create your target segment in Step 1.
Next, as you begin to craft your rules in Step 2, you will find two new categories of options available for historical data Operations and Historical Data.
There are two types of Strategy Builder statement designs that will use Historical data: Comparison and Threshold. By selecting to craft a rule with an operation, you can create a Comparison Condition.
Comparison Conditions: Where historical trends have changed relative to a period
i.e., If the increase of net revenue for one month over the net revenue is between 10 and 20 % then act.”
By selecting to craft a rule with an historical data attribute, you can create a Threshold Condition.
Threshold Conditions: Where the data meets or clears a specific number.
i.e., "If the average number of daily orders over the last 3 months is less than or equal to 5, then act."
You can also utilize sales data as a condition for setting up your price bounds in Step 3.
What is a Confidence Score?
The confidence score allows a user to determine what measure of data is appropriate for their strategy usage.
Do you only want to enable a pricing recommendation when you have 100% of data for a time period within the PO system?
Or is it okay if you only have 120 out of 130 days of data ingested in the system. This is completely up to you. The confidence score is applicable only with the historical data feature. It can be adjusted at any time. You can set one confidence score per catalog, on the scale of 0 to 100.
Are you interested in adding Historical Sales Data to your strategy power? First thing, reach out to your CSM to get started.