Using Artificial Intelligence to increase sales?
Promo Forecast AI is one of the most interesting new custom solutions from Sluno. Using promotional sales data, it applies AI to accurately determine what product will be most successful in upcoming promotions. Thus, retailers and suppliers gain complete control over the entire procedure of promotion preparation, from product selection and pricing to precise analytics at the end of the promo.
Customers face increasing living costs due to the current world circumstances, which means they have to be much more careful about how they spend their money. Thus, retailers have to face new challenges, especially in promotion and marketing. According to available data, Czech customers have recently spent more than 58% of their spending on promo sales. The Association of Trade and Tourism report for 2021 states that “every second Czech Crown within the retail industry is spent in sales.”
As a result, retailers look for ways to streamline the whole process – how to calculate the volume of goods sold in the sales, combine multiple products across categories to avoid mutual cannibalisation, or better estimate inventory levels. Promo Forecast AI can handle it all. It requires very little, just historical sales data.
Full control over promotional sales
Promo Forecast AI relies on machine learning algorithms and big data analytics. Its development was driven, among other things, by the experience of our colleagues who had worked for several years for retail chains. As a result, the outcome is both efficient and very intuitive to use and ready for immediate deployment for chains with hundreds of stores as well as small retailers. At the same time, it also assists the retailer suppliers with promotions as they also try to determine how much of a particular product will be sold in a particular sales event.
The daily operation is highly fast-paced and can cover all the major requirements of the retailer. They can monitor individual stores and their potential in the promotions segment, observe the margin development for different time periods, and generally gain a better understanding of what happens in the promotions. They can determine the exact moment when an item may be sold out and react to the situation and inform their customers in time. In addition, the results can be easily linked to both ERP and BI systems, as well as to the sales schedule.
Besides increasing the planning accuracy, the technology implementation may lead to a 15% growth in promotional and seasonal turnover and a significant reduction in stock overages, which according to our testing results, constitutes one of the essential benefits for retailers.
Key benefits of Promo Forecast AI system
- Reduction in stock and overstocking,
- Increased availability of goods on shelves,
- Speeding up and streamlining the promotions planning process,
- Effective selection of products generating the most profit,
- Detailed analytics; accurate measurement of the impact of each promotion,
- Ready for all promotional mechanics,
- Easily customisable web interface.
A clear answer to a complex task
The entire system can be implemented within a few weeks. The existing technical equipment and staff can handle everything; thus, there is no need to fill new positions. The system needs only input data and sales history, preferably for at least the past three years, but even two will suffice. Analysing the data, Promo Forecast AI can identify various seasons and influences, such as competitors opening new stores, holding major sporting or cultural events, weather trends, etc.
The system can cope with all types of promotional mechanics (crown, percentage or quantity discounts, 2+1 promotions, WIGIG, etc.). Moreover, new procedures and customised parameters can be added according to the wishes and requirements of a particular retailer. We can tailor even the language and terminology or set up proper processes related to promotions.
The Promo Forecast AI solution delivers the answer to often complex promotions systems designated for retailers. It offers simplicity, automation in scheduling and an excellent overview of all relevant data. It enables users to make good predictions, easily select the best promotional mechanics, and identify the discounts with the most substantial positive impact on increasing sales.