In a competitive online market, Wino Store had noticed the price impact on conversion rates.
Wino Store, a boutique online wine store, had noticed significant shifts in conversion rates when they reduced prices. They were looking to capitalise on this insight and see if they could utilise artificial intelligence to better improve their pricing strategy.
Remi AI initially began with a Proof of Concept Analysis across the client's historic sales data at a transaction level. Identifying both distinct buyer behaviour across different client clusters and also changes to conversion rates bound to the price of the SKU, Remi AI began to run simulations based off historic data to understand the potential margin increases.
With the simulation complete, Remi AI worked with the client to integrate the Dynamic Pricing A.I engine with their Magento platform. The margin ranges for the individual SKUs were established and the Pricing Engine was taken live.
The results? Profit margins increased by 11.2% in under 3 months.
With significant increases in conversions on a range of products with only marginal price reductions, the client saw significant increases in profit margins across the different product categories.