eCommerce System: Shopify
Profit Optimization Tool: Pricing AI
Industry: DIY Home Improvement
Goals: Find a better approach to pricing online
Too many spreadsheets, Not Enough Time
Since launching their specialty home improvement retail business in 2012, the company relied on signals from their competitors, big box retailers, and the DIY industry to set their product prices. They needed a more sophisticated approach to pricing their products in the competitive digital industry. With a product catalog of almost 1,000 product SKUs, they wanted a more proactive solution to analyzing their data and making pricing decisions that was less manual and less labor intensive, helping save them time and resources, while helping them grow their profit.
Using Machine-Learning and Generative AI To Process Data Quickly and Efficiently
Using an API connector, Hypersonix ProfitGPT connected to the business’ Shopify site within minutes. Using its machine learning and generative AI algorithms, ProfitGPT immediately began to process years’ worth of data to better understand the history and market of the business. The team received actionable insights on pricing changes they could make to realize profit growth.
Automated Data Analysis Let to Overall Profit Growth of 16.52%
Once the first round of ProfitGPT insights was ready, the team used that data to make pricing changes. They pushed those updated prices to the site and saw a 16.52% lift in profit for those SKUs with a 3.7% lift in profit ratio. The process was also faster, with data and insights provided in real-time, helping save the team time and resources. ProfitGPT continues to provide the team with an improved understanding of their pricing strategy and price elasticity for their products. The insights they receive have helped them achieve overall profit growth.