AI helps to forecast accurate
Brand and Product managers have struggled to estimate accurate sales volumes for future promotions.
“I don’t know for sure how much volume I can sell for XYZ Product, let me start with 20K units as I did last month and Improvise”
This is common guesswork at play for most of the category and brand managers while planning promotions for their portfolio.
Brand and Product managers simply copy paste promotions info from historical data and tweak it to create new promotions plans.
- Challenge in estimating accurate sales volumes for promotion.
- Challenge in choosing the right product category for promotion.
- Dependency on inaccurate historic data to plan promotion strategy.
- Lack of insights on various factors affecting product promotions and sales.
- Overspending and Underspending on promotions
The SpendO Way
- Learn from historical data patterns identified and communicated by AI
- Simulate millions of promotion scenarios
- Optimize every single promotion for better results
- Prescribe a winning deal
SpendO leverages the power of Artificial Intelligence algorithms to learn the historic sales pattern for every product to provide future sales volume estimations as accurate as 90%.
“Sales volume depends on a plethora of factors which can be internal and external”
For Example. the sales of a product can be influenced by a Seasonal factor or that Television ad which features a movie superstar endorsing the product. How baseline numbers are projected for the week of promotions? Is it a 20% OFF or 50% OFF promotion?
AI helps to find this hidden equation between sales and all these factors with the help of historical data.
Sales Volume= β0 + β1 * (Product) + β2 * (Offer) + β3 * (Baselines) + β4 * (TV Ads)
- SpendO helped a global CPG company to improve its sales forecasting accuracy from 73% to 91.2%.
- Promotion planners got more confident in planning promotions as predicted sales figures matched the actual numbers daily.
- Accurate sales insights helped planners avoid overspending and underspending on some of the high stake promotions.
- Trade Spends got utilized properly as every planner knows the value of each promotion and the sweet spot to target it.
- Timely alert of predictions helped planners manage bad performing promotions with due diligence.