Strategic Retail Analysis with DoubleBlaze Pricing Templates

Staying ahead of the curve is imperative with today’s competitive market. Retailers recognize the potential of harnessing Artificial Intelligence (AI) and Machine Learning (ML) to redefine their strategies, but many find the journey fraught with challenges. Traditional approaches, such as costly enterprise software solutions and hiring data scientists who may not grasp the nuances of your business, often fall short of delivering the desired value.

Enter DoubleBlaze Consulting. With a wealth of industry experience and a deep-rooted understanding of data science, we’ve crafted industry-specific templates that pave the way for harnessing the power of AI and ML, making it accessible to businesses with a modest initial investment and rapid returns. Our retail analysis offering is Enterprise Pricing, an innovative set of templates designed to optimize your pricing strategies. But how does it work, and what can you expect from our services?

The Blueprint for Retail Transformation: DoubleBlaze’s Services

At DoubleBlaze Consulting, one of our missions is to help retailers transform their operations using AI and ML, and we offer a range of services to achieve this goal. Here is the value each template can bring to your retail business:

  1. Broad Analysis of Items:

To embark on your AI/ML journey, we begin with a comprehensive analysis of your product catalog. This involves determining Key Value Items (KVIs), the cornerstone of our approach. KVIs represent the top X% of items that yield the most significant returns. However, we don’t stop at KVIs alone; we have the flexibility to expand the analysis to include other categories such as Slow Movers, Background items, and Foreground items. These category definitions may vary from one business to another with many businesses already having some idea of KVIs.  However, this categorization is often based on legacy knowledge or subjective opinions.

  1. Basket and Cross Sell Analysis:

Understanding customer behavior is pivotal in retail. Our basket and cross sell analysis dives deep into the correlation between items, shedding light on what your customers typically purchase together. For example, if a customer buys peanut butter, there might be a 75% chance they’ll also purchase jelly (an illustrative example). Or in apparel if the customer buys a particular blouse there could be a higher chance they would buy an accessory. The real value lies in uncovering more subtle connections that might be overlooked in traditional basket and cross sell analysis. By understanding the composition of your customers’ intended purchases, you can plan cross-product promotions, bundles, pricing adjustments, and more intelligently enhance your customer experience.

  1. Elasticity Study:

Price changes can significantly impact your sales and profitability. Our elasticity study aims to provide insights into which products are more sensitive to price changes and which are not. It connects this analysis with your KVIs and cross sell analysis, resulting in a concept we call “basket elasticity” or for apparel, “cross sell elasticity.” In essence, if a KVI item is both a purchase driver and highly responsive to price changes, altering its price can have a substantial impact on complementary items. This understanding allows for smarter decisions on pricing, promotions, and assortment planning.

  1. Recommendations:

Ultimately, our goal is to provide you with a tool that can recommend optimal prices, incorporating elasticity and ML insights into the decision-making process. While this is a work in progress, the vision is to create an analysis template that can seamlessly integrate with your pricing tool, acting as an “add-on.” This add-on can optimize your top KVIs or other strategically important items, which drive a significant portion of your revenue and profits. It can potentially function as a stand-alone tool or work alongside your existing pricing solutions, depending on your business’s unique needs.

In conclusion, DoubleBlaze Consulting is not just another service provider. We are your partner in retail transformation, offering a suite of services that empower your business with the intelligence and insights needed to thrive in a dynamic marketplace. By embracing AI and ML, you can navigate the challenges of the modern retail world and unlock new opportunities for growth, efficiency, and customer satisfaction. Your journey with DoubleBlaze starts here, and the possibilities are boundless. This is how to get started.

Back To Articles Subscribe

Leave a Reply

Your email address will not be published.