Profit optimization solutions enable an organization to efficiently manage and optimize the price of its goods and services and offer and manage off-invoice rebates that incentivize desirable customer behaviors. Profit optimization solutions often integrate with, but are considered separate from, configure, price and quote (CPQ) applications. Salespeople use CPQ to capture and negotiate transactions. Profit optimization solutions are used primarily by back-office product management, sales operations, pricing management and deal desk teams. Although, the outcomes and recommendations are surfaced in sales-channel-specific tools such as CPQ.
Retail refers to products and services that support the planning, execution, and optimization of commerce across physical and digital retail environments. This category includes markets that focus on digital commerce, point-of-sale systems, pricing and promotion optimization, store operations, and retail media-enabling retailers to deliver seamless, data-driven, and customer-centric shopping experiences.
Retail assortment management applications are foundational for modernizing merchandising processes as part of a digital business transformation strategy in unified retail commerce. The demand for these products is based on the item being on trend, seasonal or in fashion and, following maturity, demand will decline. Customers are increasingly becoming frustrated by wide assortments of excessive products that are prone to stock-out gaps, especially within short life cycle retailing with the proliferation of stock-keeping units (SKUs). They are now expecting retailers to provide an editing service to pare down item choices to those that are relevant to their lifestyles. Intelligent curation of assortments is enabling fashion retailers to present a reduced, but more targeted, assortment of styles and colors that are less confusing and are more in line with consumers’ values. This will translate to a boost in sales and profit margins, a decrease in end-of-season markdowns and reduction in waste.