Reshaping the CPG Industry with AI
In the current battle for market shares in the CPG sector, larger companies are being challenged by smaller niche players that have a data advantage and direct consumer connections.
Learn MoreFor any company selling products or services, whether online or in brick-and- mortar stores, setting the optimal price is everything. And it’s a fine balance to find the equilibrium between what customers are willing to pay and what the business’s profit margins can withstand. The big players have continually proved price optimization as a strategy critical to their success — Walmart reportedly changes its pricing more than 50,000 times per month, and they have the growth rate to show for it.
Dynamic pricing, a highly flexible approach to setting the cost for a product or service, is one way to find this optimal balance. But so far, dynamic pricing has only been used widely by major players in e-commerce and has unfortunately not spread far beyond that market. See how one company broke away from the norm of dynamic pricing and was able to bring this revolutionary predictive analytics technique to any business, whether offline or online.
PriceMoov is a Plug and Play Yield Management solution. Founded in 2016, PriceMoov has been experiencing strong growth. Some of its users are car rentals services, but also airline companies and event organizers. PriceMoov provides a service that delivers optimal pricing suggestions and solutions to its customers by weighing the intrinsic value of the item, its seasonality, and the attributes of the customer himself through detailed segmentation. To do so, Pricemoov collects datasets from its customers that are updated daily through partitioning.
PriceMoov’s challenge was that data originating from old SI systems, Oracle, or MySql was dirty and required a full- time developer to perform long ETL (extract-transform-load) steps in PHP for cleaning. Once cleaned, the datasets were painfully entered into a model, as they were custom-built pipelines. And once finished, the replication and deployment process for the next customer was taking weeks.
PriceMoov discovered Dataiku, which has transformed their business by not only allowing them to run proof-of-concepts for potential customers on short notice thanks to significantly faster data cleaning processes and the ability to quickly replicate existing work, but also ultimately by enabling them to provide better pricing options overall.
Dataiku has been pivotal in accelerating our growth by allowing us to scale our operations. With the success of this initial project, we’re looking forward to enhancing the work we’ve already done by going real time with API requests. This will further expand our customers’ opportunities when it comes to robust pricing options.
Thanks to Dataiku, PriceMoov had a two-week improvement in the speed at which they could produce pricing and forecast models, created 10 times more scenarios, and improved in staff performance and development.
Dataiku allows retailers to massively scale AI efforts by enabling data democratization to execute on use cases like dynamic pricing, demand forecasting, and more.
Read moreIn the current battle for market shares in the CPG sector, larger companies are being challenged by smaller niche players that have a data advantage and direct consumer connections.
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