Comfy
Comfy
Optimizing Promotions with AI: Personalizing Pricing for Higher ROI
Optimizing Promotions with AI: Personalizing Pricing for Higher ROI
Optimizing Promotions with AI: Personalizing Pricing for Higher ROI
18% increase
Optimized discounts conversion rate
20% faster
Setup of promotional campaigns
12% sales increase
Exceeding the initial target of 10%
My Role
Product Designer
The Team
1 x Product Designer
1 x Head of AI Engineering
2 x AI Engineers
1 x Developer
1 x Delivery Manager
Year
2024
Problem
Problem
Problem
Meet Clara, the Promotions Manager at Comfy, a retail company facing pressure to hit aggressive sales goals while keeping margins intact.
Clara's challenge? Figuring out how to tailor promotional discounts without sacrificing the company’s bottom line. Every promotion felt like walking a tightrope where discounts that were too deep ate into margins, while conservative ones left potential sales on the table.
Clara and her team faced a couple of major challenges:
📃 Manually crunching numbers
Team was burdened by tedious manual calculations to determine discount strategies.
🗃️ Balancing endless spreadsheets
It is difficult to manage data effectively, leading to operational inefficiencies and frequent errors.
🤔 Missing opportunities for better revenue growth
The company missed key opportunities to maximize revenue, often either overshooting or underdelivering on discounts.
Meet Clara, the Promotions Manager at Comfy, a retail company facing pressure to hit aggressive sales goals while keeping margins intact.
Clara's challenge? Figuring out how to tailor promotional discounts without sacrificing the company’s bottom line. Every promotion felt like walking a tightrope where discounts that were too deep ate into margins, while conservative ones left potential sales on the table.
Clara and her team faced a couple of major challenges:
📃 Manually crunching numbers
Team was burdened by tedious manual calculations to determine discount strategies.
🗃️ Balancing endless spreadsheets
It is difficult to manage data effectively, leading to operational inefficiencies and frequent errors.
🤔 Missing opportunities for better revenue growth
The company missed key opportunities to maximize revenue, often either overshooting or underdelivering on discounts.
Goals & Solutions
Goals & Solutions
Goals & Solutions
🏷️ Pricing Strategy
🏷️ Pricing Strategy
🏷️ Pricing Strategy
Clara’s goal was clear: how could she personalize the discounts to meet sales targets and maintain profitability?
We helped deploy uplift models that recommended specific discount ranges for customer segments, allowing her to meet the sales target while safeguarding the margins.
💡 AI-Powered Uplift Modeling
💡 AI-Powered Uplift Modeling
💡 AI-Powered Uplift Modeling
Using causal AI, Clara’s team could finally predict how much of a discount each customer segment needed to boost sales without going overboard. This led to more targeted promotions, helping sales associates close deals without slashing prices too steeply.
Using causal AI, Clara’s team could finally predict how much of a discount each customer segment needed to boost sales without going overboard. This led to more targeted promotions, helping sales associates close deals without slashing prices too steeply.
⚡ Efficient Budget Allocation
⚡ Efficient Budget Allocation
⚡ Efficient Budget Allocation
Clara needed to allocate her promotional budget wisely. Our AI model showed her which customer segments were most responsive to different discounts, reducing her workload and improving outcomes.
Clara needed to allocate her promotional budget wisely. Our AI model showed her which customer segments were most responsive to different discounts, reducing her workload and improving outcomes.
📊 Intuitive Team Dashboard
📊 Intuitive Team Dashboard
📊 Intuitive Team Dashboard
We developed a dashboard where Clara and her team could input sales targets, set constraints, and monitor real-time data. This made it easy to track the ongoing success of promotional efforts and adjust based on performance.
We developed a dashboard where Clara and her team could input sales targets, set constraints, and monitor real-time data. This made it easy to track the ongoing success of promotional efforts and adjust based on performance.
Solutions & Impact
Behind the scenes, Comfy team was able to adjust the pricing to reflect current stock levels. For example, during a period of low supply, the system suggested and adjusted pricing upward to preserve margins, while overstocked items were automatically marked down.
Behind the scenes, Comfy team was able to adjust the pricing to reflect current stock levels. For example, during a period of low supply, the system suggested and adjusted pricing upward to preserve margins, while overstocked items were automatically marked down.
18% increase
Optimized discounts conversion rate
18% CR increase
Optimized discounts conversion rate
18% increase
Optimized discounts conversion rate
20% faster
Setup of promotional campaigns
20% faster
Setup of promotional campaigns
20% faster
Setup of promotional campaigns
12% sales increase
Exceeding the initial target of 10%
12% sales increase
Exceeding the initial target of 10%
12% sales increase
Exceeding the initial target of 10%
