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Confidential ©2015 Revionics, Inc. 1


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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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


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


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


Provides Recommendationsthat resonate with customers,

maximizes investments,

and aligns to business strategies –leveraging proven science

delivered in a manner that people understand


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.

Appendix

9


• Flexible and intuitive promotion planning

• Industry leading forecasting capabilities

• Single system of record

• Supporting transparency & collaboration

10

Promotion Management


Promotion Management Key Features

Industry Leading Science

Intuitive & Streamlined Promotion Planning

Offer Management Achieve Financial Objectives



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



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


Getting the Right Vehicle MixUnderstanding How Each Vehicle Contributes to the Overall Lift

One Lift Factor

45% Lift

8% Lift

14% Lift

33% Lift


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


Offer Simulation

• Forecasting in seconds

• Simple & complex offers

• Polished UI/UX

• Offer and item level side-by-

side comparisons

• Forecast confidence alerts


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


Achieve Financial Objectives

Reaching Campaign TargetsAnalyze forecasts across campaigns

Track promotional investments

Roll-Up ForecastsMaximize investment potential

Track against vehicles/versions

Decomposition of lifts


Revionics®

Promotion Optimization


• 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


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


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


Setting StrategyGiving the Models Direction

Configurable WeightsSetting priorities specific to your goals

Pricing RulesIncorporating existing pricing strategies


Reaching the Best Offer


Competitive Edge


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


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


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


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Competitive IntelligenceUnderstanding Your Competitive Landscape

Collect

Competitive DataData

Cleansing

Accurate

Product Matches

SELF-LEARNING & FULLY AUTOMATED


Actionable Data

PricingStandard, MSRP, UMRP,

Discounts and Shipping

Product ConditionNew, Refurbished, Used,

Open Box, Etc.

AvailabilityIn-Stock, Out-of-Stock

AttributesSize, Color, Brand


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


Revionics®

Social Offer Management


Revionics Social Offer ManagementCreate Social Mavens

Extending

Social Reach

Rewarding

CustomerEngagement

Gaining & Strengthening Loyalty

Measuring & AnalyzingSuccess


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


Promotion Performance

Analysis


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


Components

• Actual Sales

• Promotional Lift

• Affinity

• Cannibalization

• Vendor Funds*

• Net Sales

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Performance Analysis Report

* Impacts Profit$ Metric

Units

Revenue

Profit $

Analysis Scope

• Offer– Price

– Amount Off

– Percent Off

– BxGx

– BxGy

• Key Vehicles

Metrics


• 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


Item Cluster Analysis


•Compares base and

promo elasticity

•Groups items by response

to different promotional

strategies

• Identifies strategic

opportunities

Item Cluster Analysis

41


•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


• 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


• 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


Dashboard


• 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