Case Studies In the Bag: Vera Bradley sets new products and price points with predictive analytics

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	In the Bag: Vera Bradley sets new products and price points with predictive analytics

In the Bag: Vera Bradley sets new products and price points with predictive analytics

Technology Category	Analytics & Modeling - Predictive Analytics Platform as a Service (PaaS) - Data Management Platforms
Applicable Industries	Consumer Goods Retail
Applicable Functions	Product Research & Development Sales & Marketing
Use Cases	Demand Planning & Forecasting Predictive Replenishment
Services	Cloud Planning, Design & Implementation Services Data Science Services
Challenge	Vera Bradley, a fashion accessory and handbag retailer, faces the challenge of accurately predicting consumer interest and optimal pricing for new products. The company constantly introduces new products, making educated guesses on customer interest and pricing. Pricing too low risks losing margin, while pricing too high may result in unsold items. The uncertainty in consumer preferences, especially in the fashion industry, adds to the complexity. The goal is to offer the right product assortment at the right time, price, and place to optimize sales and product performance. Read More
About Customer	Vera Bradley is a well-known fashion accessory and handbag retailer with a loyal consumer following for over 30 years. The company offers a wide range of products in various sizes, styles, patterns, and colors. Vera Bradley's products are available at more than 3,000 specialty retailers and over 75 company stores across the United States. The brand is recognized for its unique and vibrant designs, attracting a dedicated customer base. The company continuously brings new products to market, aiming to meet consumer demands and preferences while maintaining its brand identity and market presence. Read More
Solution	Vera Bradley partnered with First Insight to leverage its predictive analytics solutions, including InsightSelection, InsightPricing, and InsightMarketing. These tools help the company identify optimal customer profiles, determine entry price points, and forecast average unit retail prices before products hit the market. The solutions use analytic models to generate market response curves, showing price elasticity of demand and helping retailers find the perfect entry price point. The system engages consumers through gamification, using surveys to gauge customer interest in products, price points, and other factors. This data-driven approach allows Vera Bradley to optimize its product assortment and pricing strategy, reducing uncertainty and improving new product performance. Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Predictive Analytics

Platform as a Service (PaaS) - Data Management Platforms

Applicable Industries

Consumer Goods

Retail

Applicable Functions

Product Research & Development

Sales & Marketing

Use Cases

Demand Planning & Forecasting

Predictive Replenishment

Services

Cloud Planning, Design & Implementation Services

Data Science Services

Challenge

Vera Bradley, a fashion accessory and handbag retailer, faces the challenge of accurately predicting consumer interest and optimal pricing for new products. The company constantly introduces new products, making educated guesses on customer interest and pricing. Pricing too low risks losing margin, while pricing too high may result in unsold items. The uncertainty in consumer preferences, especially in the fashion industry, adds to the complexity. The goal is to offer the right product assortment at the right time, price, and place to optimize sales and product performance.

About Customer

Vera Bradley is a well-known fashion accessory and handbag retailer with a loyal consumer following for over 30 years. The company offers a wide range of products in various sizes, styles, patterns, and colors. Vera Bradley's products are available at more than 3,000 specialty retailers and over 75 company stores across the United States. The brand is recognized for its unique and vibrant designs, attracting a dedicated customer base. The company continuously brings new products to market, aiming to meet consumer demands and preferences while maintaining its brand identity and market presence.

Solution

Vera Bradley partnered with First Insight to leverage its predictive analytics solutions, including InsightSelection, InsightPricing, and InsightMarketing. These tools help the company identify optimal customer profiles, determine entry price points, and forecast average unit retail prices before products hit the market. The solutions use analytic models to generate market response curves, showing price elasticity of demand and helping retailers find the perfect entry price point. The system engages consumers through gamification, using surveys to gauge customer interest in products, price points, and other factors. This data-driven approach allows Vera Bradley to optimize its product assortment and pricing strategy, reducing uncertainty and improving new product performance.

Impact #1	Vera Bradley has seen dramatic improvements in new product performance by using First Insight's solutions.
Impact #2	The company has gained a greater understanding of demand and price sensitivities, resulting in a more optimized assortment and pricing strategy.
Impact #3	The cloud-based tool has allowed Vera Bradley to create deeper customer relationships, maintain brand awareness, and build loyalty.

Impact #1

Vera Bradley has seen dramatic improvements in new product performance by using First Insight's solutions.

Impact #2

The company has gained a greater understanding of demand and price sensitivities, resulting in a more optimized assortment and pricing strategy.

Impact #3

The cloud-based tool has allowed Vera Bradley to create deeper customer relationships, maintain brand awareness, and build loyalty.

Benefit #1	First Insight's pricing solution helps retailers typically increase their sales or margins by as much as 9%.
Benefit #2	David’s Bridal improved its forecast accuracy by more than 20% through First Insight’s predictive analytics solution.

Benefit #1

First Insight's pricing solution helps retailers typically increase their sales or margins by as much as 9%.

Benefit #2

David’s Bridal improved its forecast accuracy by more than 20% through First Insight’s predictive analytics solution.

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Overview

In the Bag: Vera Bradley sets new products and price points with predictive analytics

Operational Impact

Quantitative Benefit