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Confidential ©2015 Revionics, Inc. 1
Confidential ©2015 Revionics, Inc. 2
THE BEST OFFER
THE RIGHT PRODUCTS
THE IDEAL VENDOR DEAL
THE OPTIMAL MARKETING MIX
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CREATE PROFITABLE PROMOTIONS
ACCURATELY FORECAST DEMAND
TRACK PROMOTIONAL EFFECTIVENESS
MAXIMIZE MARKETING SPEND
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Confidential ©2015 Revionics, Inc. 3
SET GOALS
&
STRATEGIES
Align metrics &
financial incentives
to promotional
action
RESPOND
Quickly to
customers, local
conditions,
competitors, &
selling conditions
FORECAST
& ANALYZE
Know the demand,
cannibalization,
affinity, & align
financial
expectations
PLAN
With objective to
understand value
drivers and
customer response
OPTIMIZE &
SIMULATE
Compare
recommended
and simulated
options before
executing in Market
Confidential ©2015 Revionics, Inc. 4
Revionics Promotion SuiteLearn to Speak Customer
MAXIMIZE MARKETING
INVESTMENTS
Insights into lift drivers, including
social, turn guesses into aged
business practices
PROMOTE
STRATEGICALLYTAKE ACTION ON
MARKET CHANGES
Competitive Insights,
Up-to-date forecasting, and
Pre, post, & in-flight reporting
OPTIMIZED OFFERS
AND PRODUCT
RECOMMENDATIONSSimulations, Side-by-Side Comparisons,
Cross Item Effects, Vendor Funding
Inclusion, & Vehicle Lift Effects
TRANSPARENT
RESULTS & FACTS
Centralized data, streamlined
processes, proven science, and
collaboration support fact-based
decisions
Confidential ©2015 Revionics, Inc. 5
Solving Everyday Challenges
DETERMINE THE RIGHT
PROMOTION STRATEGY
FOR ALL CHANNELS
BUILD A
BIGGER BASKET
UNDERSTANDING
CUSTOMER’S
PROPENSITY TO BUY
IMPROVE VENDOR
FUNDING & NEGOTIATIONS
KNOW WHICH ITEMS TO
PROMOTE, IN WHICH
VEHICLES & CHANNELS
GAIN INSIGHT INTO
COMPETITORS’
ACTIVITIES
Confidential ©2015 Revionics, Inc. 6
Provides Recommendationsthat resonate with customers,
maximizes investments,
and aligns to business strategies –leveraging proven science
delivered in a manner that people understand
Confidential ©2015 Revionics, Inc. 7
Provides Recommendationsthat resonate with customers,
maximizes investments,
and aligns to business strategies –leveraging proven science
delivered in a manner that people understand
Insight into
each vehicle liftPredict financial
results across
campaigns &
vehicles Test vendor
funding
options
Traffic Driver,
basket builder,
etc.
Beautiful & Configurable Workflow,
Forecasts, Transparent Results,
Easy Reporting
Offer Type, Discount, Items
Simulation with Side
by Side Comparison
Confidential ©2015 Revionics, Inc. 8
Confidential ©2015 Revionics, Inc.
Appendix
9
Confidential ©2015 Revionics, Inc.
• Flexible and intuitive promotion planning
• Industry leading forecasting capabilities
• Single system of record
• Supporting transparency & collaboration
10
Promotion Management
Confidential ©2015 Revionics, Inc. 11
Promotion Management Key Features
Industry Leading Science
Intuitive & Streamlined Promotion Planning
Offer Management Achieve Financial Objectives
Confidential ©2015 Revionics, Inc. 12
Industry Leading Science
Considers Vendor FundsMaximizing vendor deals
Facilitating better negotiation
Forecast Accuracy AlertsProviding transparency
Instilling more confidence
Cross-Item ImpactsUnderstanding affinity &
cannibalization affects
Self-Learning ModelsEnhancing forecast with most
up-to-date performance data
Confidential ©2015 Revionics, Inc. 13
Industry Leading Science
Price SensitivityUnderstanding demand and
promotional elasticity
New Item ForecastingModeling data for items with
little or no sales history
Like-item or attribute-based
Decomposition of LiftsFinding the right vehicle mix
Confidential ©2015 Revionics, Inc. 14
Getting the Right Vehicle MixUnderstanding How Each Vehicle Contributes to the Overall Lift
One Lift Factor
45% Lift
8% Lift
14% Lift
33% Lift
Confidential ©2015 Revionics, Inc. 15
Intuitive & Streamlined
Simulate Alternative OffersSupporting simple & complex offers
Side-by-side comparisons
Flexible WorkflowsEnabling collaboration
Removing complexity
Central RepositoryCross organization visibility
One system of record
Confidential ©2015 Revionics, Inc. 16
Offer Simulation
• Forecasting in seconds
• Simple & complex offers
• Polished UI/UX
• Offer and item level side-by-
side comparisons
• Forecast confidence alerts
Confidential ©2015 Revionics, Inc. 17
Offer Management
Freeze & ReforecastLocking offers for approvals,
planning & reporting
Updating forecasts with latest data
Monitor & Adjust OffersReporting against actuals
Adjusting to market changes
Analyzing promotional lifts
Back Office ExportSending promotional data downstream
Configurable
Reducing stress on internal IT teams
Confidential ©2015 Revionics, Inc. 18
Achieve Financial Objectives
Reaching Campaign TargetsAnalyze forecasts across campaigns
Track promotional investments
Roll-Up ForecastsMaximize investment potential
Track against vehicles/versions
Decomposition of lifts
Confidential ©2015 Revionics, Inc.
Revionics®
Promotion Optimization
Confidential ©2015 Revionics, Inc.
• Customize promotional goals and strategies
• Maximize the promotional spend
• Ensure the best promotional offer
• The most efficient workflow
20
Promotion OptimizationStriking a Balance Between Traffic, Sales, Discount and Margin
Confidential ©2015 Revionics, Inc. 21
Efficiently Maximizing Investments
Most Efficient WorkflowSet the strategy & get the best offer in seconds
Promotional ScienceAll the benefits of
Promotion Management
Applying StrategyEnsuring overarching goals
translate down to execution
Best Promotional OfferBalancing traffic, sales, investment,
cost, discount and margin
Confidential ©2015 Revionics, Inc. 22
Science InsightsHolistic View of Promotional Components
Performance Data
Vendor Funding
Vehicle Mix
Cross-Item Impacts
Promotional Uplift
Consumer Demand
New Item Forecasting
Self-Learning Models
Price Sensitivity
Confidential ©2015 Revionics, Inc. 23
Setting StrategyGiving the Models Direction
Configurable WeightsSetting priorities specific to your goals
Pricing RulesIncorporating existing pricing strategies
Confidential ©2015 Revionics, Inc. 24
Reaching the Best Offer
Confidential ©2015 Revionics, Inc.
Competitive Edge
Confidential ©2015 Revionics, Inc. 26
Unique Market Value
Via User Emulation
HIGH ACCURACY
ACROSS BROAD
CATEGORIESEliminating need for
multiple vendors
DEEP INSIGHTS
AND HISTORICAL
TREND ANALYSISAcross pricing,
promotion, & assortment
RAPID
IMPLEMENTATION
In 2-3 weeks
Comprehensive, End-to-End Solutions for all Channels
With the rest of Revionics Suite
from data collection to execution to measurement & reporting
Confidential ©2015 Revionics, Inc.
Benefits of User EmulationHigher Accuracy, Broader Reach, and More Relevant Results
Data Collection
User Emulation
Query Engine
User Emulation
Competitors’ Web
Scraping
Exact Matching Highly Accurate HTML Dependent
Similar Attribute Matching Available Not Available
Match Coverage High Medium / Low
Automation Full Partial
Unique Approach to Data Collection
Emulates a user going to a competitive website and searching for items based on attributes just as a human would
Confidential ©2015 Revionics, Inc. 28
Solving the Biggest ChallengesHelping Retailers Take More Action With Competitive Intelligence
Labor Intensive
Valuable Resources Spent Using In-
House Tools
Limited Channels
Lacking Visibility to Products Across
Multiple Channels
Limited Products
Inefficient Data Scrapes & Product
Matching
NotReal-Time
Lack of Visibility to Daily Price
Fluctuations
Confidential ©2015 Revionics, Inc.
1010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010110101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010100101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010100101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101001010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101011010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010
Competitive IntelligenceUnderstanding Your Competitive Landscape
Collect
Competitive DataData
Cleansing
Accurate
Product Matches
SELF-LEARNING & FULLY AUTOMATED
Confidential ©2015 Revionics, Inc. 30
Actionable Data
PricingStandard, MSRP, UMRP,
Discounts and Shipping
Product ConditionNew, Refurbished, Used,
Open Box, Etc.
AvailabilityIn-Stock, Out-of-Stock
AttributesSize, Color, Brand
Confidential ©2015 Revionics, Inc. 31
Price PositioningUnderstanding It and Taking Action
Intuitive
Dashboard
Visual Insights &
Analytics
Understanding
Price Position
Visibility to
Competitive
Promotional Prices
Uncover Margin
Opportunities
By Competitor,
Category,
Attribute & Item
Take
Action
Prioritize Opportunities
& Improve Bottom-Line
Confidential ©2015 Revionics, Inc.
Revionics®
Social Offer Management
Confidential ©2015 Revionics, Inc.
Revionics Social Offer ManagementCreate Social Mavens
Extending
Social Reach
Rewarding
CustomerEngagement
Gaining & Strengthening Loyalty
Measuring & AnalyzingSuccess
Confidential ©2015 Revionics, Inc. 34
The Social Rewards Loop
Create a PromotionManual or Optimized
Engage ShoppersNotify Existing Customers
Email, Web, Mobile
Facilitate Social ActionShoppers Share, Post, Tweet, etc.
to access offerReward CustomersOffer available at checkout
once action is published
Extend Social ReachAction amplified through
customer’s social network
Confidential ©2015 Revionics, Inc.
Promotion Performance
Analysis
Confidential ©2015 Revionics, Inc. 36
Promotion Performance AnalysisObjective
Determine the performance of past promotions
Decompose sales into various metrics
Identify effective and ineffective offers
Provides repository for promotion perfromance
User learnings for future offers
Confidential ©2015 Revionics, Inc.
Components
• Actual Sales
• Promotional Lift
• Affinity
• Cannibalization
• Vendor Funds*
• Net Sales
37
Performance Analysis Report
* Impacts Profit$ Metric
Units
Revenue
Profit $
Analysis Scope
• Offer– Price
– Amount Off
– Percent Off
– BxGx
– BxGy
• Key Vehicles
Metrics
Confidential ©2015 Revionics, Inc.
• Compare performance with Offer Strategy
– Is it driving Revenue/ profit/ units
• Review offers that does not drive incremental profit or revenue
• Offers that drive revenue, but not profit
– Additional funding needs?
Identify Best/Worst Performing Offers
Confidential ©2015 Revionics, Inc.Confidential ©2015 Revionics, Inc. 39
Report Examples
Promotional LiftsRevenue, Profit, Unit
Performance
Category, Relative
Promotional Lifts
Confidential ©2015 Revionics, Inc.
Item Cluster Analysis
Confidential ©2015 Revionics, Inc.
•Compares base and
promo elasticity
•Groups items by response
to different promotional
strategies
• Identifies strategic
opportunities
Item Cluster Analysis
41
Confidential ©2015 Revionics, Inc.
•Validate the most effective
promoted Items
• Identify Items…– To promote
– That may be over-promoted
– That move the needle
– That have more benefit relative to others
• Identify options for grouping items
strategically
Key Objectives
42
Confidential ©2015 Revionics, Inc.
• Promotional pricing has
a different demand
curve than regular price
• The relationship
between these curves
determines customer
response to promotion
of different items
43
Multiple Elasticities
Confidential ©2015 Revionics, Inc.
• Ad Promo/ Display• Low response when not promoted• Responds well to Med/Low pricing
• TPR• High Regular price sensitivity and
Promo sensitivity• Additional advertisement does not
generate significantly more lift over TPR
• EDLP• Highly sensitive to regular retail
pricing • Consider for Every Day Fair Pricing• Good Traffic Driver items
• Profit• Items not sensitive to Promo or
Regular pricing• “Invisible” items as far as price
sensitivity
44
Item Cluster
Confidential ©2015 Revionics, Inc.
Dashboard
Confidential ©2015 Revionics, Inc.
• Choose items for promotions with
good pricing response
• Each cluster provides insights on how
to promote or not promote
46
ICA- Deliverables and Assumptions
Actionable Insights Assumptions
• Measureable pricing response when
an item is promoted
Ongoing Insights
• Item cluster assignments in Revionics®
Promotion Optimization
• Select items for promotions based on
clusters
• List of items– Assigned to Clusters
– Promo & Base Elasticity
– Elasticity Confidences
Deliverables