ML based TPO Solutions helps a Major Home Décor Manufacturer increases campaign ROI by 15%

About

The client is a leading manufacturer and distributor of home décor, framing, scrapbooking products in the US and Canada.

Challenges

  • Account teams used multiple ways to measure the success of promotions.
  • Ineffective trade promotion optimization negatively impacted the ROI of the client.
  • The revenue was affected by 10% which amounts to approximately $25 Mn.
  • The client aimed to build an AI-powered Solution for trade promotion optimization using predictive analytics to optimize trade campaigns.

Solution

Price, volume, distribution, consumer choice survey data, preference information, POS data, customer demographics and product qualities were considered for the solution.

With the predictive analytics algorithms, current trade campaigns were optimized and difficult to spot new opportunities were identified. The algorithm can generate and analyze millions of promotional situations to find the most effective solutions. Targeted and personalized offers and promotions improved their effectiveness.

In real-time, promotion management solutions decide the best audience, communication time, communication channel, and other characteristics for each offer. This allows for in-session promotion personalization on eCommerce websites and real-time basket-based personalization at retail checkouts.

Up-selling is known to be a sales booster for businesses. Using past sales data collected by the TPO system, the client receives targeted and relevant product recommendations. A simple web-based visualization was created to aid business users in trade promotion optimization.

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Results

Using Purpose Driven AI, a trade promotion solution was built that optimized current trade campaigns and uncovered entirely new opportunities.

The trade promotion solution was deployed on the client platform for end-user consumption by all stakeholders of the ecosystem.

Tenzai’s AI-Powered solutions for trade promotion optimization are based on complex forecasting models, and they provide comprehensive diagnostics information for business users. This information helps to understand the key factors that stand behind successful promotion campaigns.

The other benefits include

  • Developing an optimal Price and Promotions calendar module.
  • Client’s Revenue improved by $29 Mn.
  • The client’s ROI increased by 15% and reduced trade promotion spend by 8%