Manufacturers and retailers share the goal of stimulating more shopping trips, so promotional campaigns are often geared towards this mutually beneficial goal. Promotions given by retailers and manufacturers have a complex structure, which includes both monetary and non-monetary components, as well as immediate and long-term effects.
In order to optimize the strategy of promotions (quantity, price, time, product,…) and impact on sell-out, it is necessary to be able to appreciate the value and impact of them.
However promotions have a cost: either the loss of sales for similar products that would have been bought otherwise or the loss of revenue due to the promotion itself. Having a clear and self-learning evaluation of promotions is mandatory to track and optimize the use of it and Artefact is able to build such predictive models to improve promotional decisions.