Case Studies

Retailer Increases Revenue 16% by Testing Promotion with First Insight

Graphic Tees


In these times of economic disruption, retailers and businesses alike cannot afford to trust their gut when it comes to markdown strategy. Many companies are struggling to move excess inventory due to supply chain challenges. Brands should be turning to retail optimization tools and predictive analytics to craft an effective promotional strategy, so they drive sell-through without leaving money on the table.

A clothing retailer wanted to understand if it should promote its private label tees at $10.99 each or 2 for $20. This decision may seem simple, but it can have a significant impact on a company's bottom line. 


Using First Insight's voice of customer platform, the retailer targeted over 4,000 shoppers that had previously purchased their private label tee category and deployed several tests across 142 items to evaluate promotional preference and willingness to pay.

promotional strategy first insight


The clothing retailer learned their target consumer perceived significantly more value at the $10.99 each promotional offering and they were able to confidently proceed with this markdown strategy.

By using AI predictive analytics for retail, the company planned for a +16% uplift in revenue by pricing the tees at $10.99 vs 2 for $20.

Learn more about how First Insight's price optimization technology can help you enhance your pricing strategy with industry-leading accuracy.

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