Smarter pricing boosts sales and visits
Optimising fresh beef pricing around customer behaviours helped one U.S. retailer boost sales, visits, and basket penetration.
2-5%
sales uplift through improved assortment and execution
2-10%
category growth against the market average
~10x
ROI from our Category Management solutions
Uncertainty was hampering action
A traditional grocery retailer wanted to improve competitiveness of its pricing in the fresh beef category – but didn’t have the tools, insights, or capabilities to do so confidently.
Earlier attempts had failed to land
Previous analysis had been conducted, but the complexities of the category meant that the results delivered limited insight. In turn, category reviews had become increasingly rare.
Understanding the customer was the key
A dunnhumby recommendations report delivered essential context on customer behaviours – helping the retailer understand why, when, and how people shopped the category.
Price increases were hampering penetration
Additional analysis showed that some of the steepest price increases had been applied to items customers considered to be among the most important within the category.
Bringing prices in line with customer needs
Equipped with these new insights, dunnhumby provided the retailer with optimised pricing recommendations across its fresh beef range.
The results
The results
Uplift from shelf to basket
By implementing those recommendations, the retailer saw an increase in visits and significant sales uplift – more than a third for some units.
Reversing a downward trend
Basket penetration also increased, contrasting with a decline in the same weeks during the previous year.
Pricing that reflects real customer behaviour
By focusing in on the products that customers cared most about, the retailer was able to reverse a downward trend.
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