dunnhumby Launches Product Modification Measure

In the UK, consumer insights provider dunnhumby has launched a tool called Revenue Growth Planner, to enable consumer packaged goods (CPG) brands to forecast the sales impact of changes to a product's pricing and promotional strategy.

Tesco subsidiary dunnhumby operates a Customer Data Science Platform combining software and consulting to help retailers and CPGs uncover insights from shopper data, both on- and off-line, with the aim of driving customer loyalty. Its new tool uses dunnhumby's Customer Demand Model to simulate the likely effects of any modifications to either a product's base pricing or associated promotional approach. The tool uses two years of transactional data across billions of customer baskets, which the firm says provides a 'realistic portrayal' of shopper behaviour in the UK.

Revenue Growth Planner is also able to assess how likely it is that a change in the price of one product will disrupt sales of competing items. The data powering the tool is updated weekly and takes account of seasonal and holiday-related sales variances, to enable users to spot developing consumer trends. Additionally, the tool allows brands to experiment with pricing modifications in a virtual environment before they go live, and using advanced demand modelling capabilities, CPGs can forecast their volume demand for the coming twelve months based on different pricing and promotional scenarios.

Alex Reynolds (pictured), Global Proposition Manager for Pricing Solutions, comments: 'The reality of the consumer-packaged goods (CPG) market today is that even the slightest alterations to price or promotional strategy can have significant consequences for sales and loyalty. We designed Revenue Growth Planner to give brands clear, trustworthy insight into the short- and long-term implications of their go-to-market strategies.'

The firm, which employs more than 2,500 specialists in offices throughout Europe, Asia, Africa and the Americas, is online at: www.dunnhumby.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.