Retailer improved success rate of new product launches through social gamification.
PITTSBURGH, January 8, 2013 - First Insight, the world's leading solution provider empowering retailers and manufacturers to introduce the right new products at the right price, is the subject of a Gartner case study on the use of social gamification to improve the success rate of new product launches.
In the case study, Garter discusses how David's Bridal, a First Insight customer, has been using the First Insight solution for testing new products prior to introduction. The Gartner report stated: "How well a new product will appeal to consumers is difficult to predict, and the cost of misjudging the appeal of a product is high. Discounting items to sell inventory is a costly proposition."
The report continued: "'Social media gamificiation' is the process of inviting and leveraging social media contacts to play purpose-built games to arrive at intended insights. When organizations use social media and gamification to observe consumer behavior, they can achieve more accurate views of customer likes and dislikes, as well as their likely buying behavior."
“With this application, the retailer gathered more detailed information than it could after six weeks of in-store testing. This empowered merchants to make more informed and timely business decisions.”
First Insight's solution is used by leading retalers and manufacturers to enable more accurate product selection, as well as to determine the optimal entry price point for new products in order to maximize margins. The Gartner report stated: "Leveraging social media can help identify the most advantageous go-to-market price to charge for a new item within the assortment."
The Gartner report concludes with the following recommendations for retailers: "Use social media gamification to receive highly relevant advice on new product appeal in the market. Use social media analysis to determine how well products will sell, without having to invest in buying stock and testing products in stores. Use it to set the optimize pricingand margins."
"We consider our inclusion in the Gartner case study to be further confirmation that our solution is idelivering measaurable value for retailers and manufacturers," said Greg Petro, founder and CEO of First Insight. "It is also affirmation that the use of social gamification, along with predictiive modeling, can yield accurate forecasts of consumer demand and new product price performance. We're pleased to be acknowledged by Gartner and look forward to helping more retailers succeed through the use of our platform."
About First Insight, Inc.
First Insight empowers retailers and manufacturers to drive new product success by introducing the right products at the right price. Through the use of online consumer enagements, the First Insight cloud-based solution gathers real-time consumer prefernece and pricing data and applies a predictive model to create actionable insights, which inform new product decisions. Companies use the first Insight solution to select the most profitable new products for improved sales, margins and inventory turnover. Implementing First Insight's predictive analytic solution gives retailers guidance for product design, buying, assortment planning, pricing and marketing decisions. Custoemrs include Fortune 500 companies, including leading department stores, specialty retailers and manufacturers. For futher information, please visit www.firstinsight.com.