Making Better Retail Product Decisions with AI and Machine Learning
Consumer packaged goods (CPG) are plagued with very high new product failure rates, often reaching 80%. In the age of Machine Learning and Artificial Intelligence, why are so many CPG brands and companies using decades-old methods to make product decisions? Decision-making based on historical sales data and intuition is not enough to succeed in this competitive CPG retail sector. Leading manufacturers are now integrating artificial intelligence in retail product decisions. With our Predictive Analytics platform powered by Machine Learning and Artificial Intelligence, CPG brands and companies now have access to predictive, real-time data to make the right product decisions at rapid speeds.
First Insight’s InsightSuite Software Platform utilizes two important elements, The Voice of the Customer and Predictive Analytics, to enable CPG retailers, manufacturers, brands, wholesalers and licensees to make data-driven product decisions on new products by answering questions that include:
First Insight’s platform accumulates customer feedback on new products through social, email, and third-party panels to gather a statistically significant sample size. Our platform then performs an analysis of the responses using AI and Machine Learning—projecting the outcomes for vital product decisions within 24 to 48 hours. Our Platform’s Artificial Intelligence retail algorithm amasses over 8,000,000 new data points per month from 30+ countries to feed into our machine learning algorithms. Each consecutive test is more accurate than the one before, creating refined and accurate predictive results.
The AI and Machine Learning results provide the insights you need in the form of product recommendations, qualitative customer comments, and price elasticity data. With First Insight’s cloud-based platform, data output is interactive and allows you to hone in on specific customer comments and responses. If a product’s projected performance does not match expectations, it is easy to identify the reason behind the data and make design or pricing adjustments to improve performance.
First Insight’s Predictive Analytics platform also provides demographic details by age, gender, and location to show how each product performs by segment. Whether you are targeting young men, loyal customers of competitors, or residents of the UK, you will have the answers necessary to make the right product decisions.
As a fast-growing nutritional supplements company, Nutrabolt is focused not only on getting the product right, but on making sure we have the right packaging, labeling and pricing. Also, since our products are offered through multiple channels...Using First Insight, within 24 hours, we have actionable data from our customers – all segmented by retail channel. This has helped generate measurable gains in sales and margins.
EVP and GM North America
First Insight’s technology gives us invaluable feedback on new products during design and development, so we can buy more of what our customer likes and eliminate products that score less well.
Director of Supply Chain and Logistics
There is no history on a brand new product. When you're innovating new products, you can't use POS historical data — you have to predict behavior. That's what's so powerful about this.
CMO Randa Accessories
Our brand and retail customers on average increase: