Generating product decisions
The present invention relates to a system and method for generating business decisions. Embodiments of this system and method receive customer transaction data and additional information (cumulatively referred to as ‘modeling data’). This data is utilized to generate a product decision tree which models consumer purchasing decisions as a tree structure. The product decision tree may be utilized by the system to analyze demand for a given leaf (product) in association with other related products. In some embodiments, customers are segmented into groupings of customers who have similar attributes, including similar shopping behaviors. Customer insights are generated for the customer segments. The customer insights and the product decision tree are used to generate business plans, which may then be provided to a store for implementation. These plans may include a product assortment plan, an everyday pricing plan, a promotional plan, and a markdown plan.
1. A computerized method for generating a business plan, useful in association with at least one store, the computerized method comprising:
receiving modeling data, wherein the modeling data includes product data, customer data, constraints, and transaction data, and receiving the modeling data comprises:
reformatting the modeling data by aggregating elements of the modeling data and processing the aggregated elements together as a single element to reduce processing time of a processor;
dividing customers into a plurality of customer segments;
generating, by the processor, a product decision tree using the modeling data, wherein the product decision tree models consumer purchasing decisions for at least one of the customer segments as a tree structure, and wherein leaf nodes of the product decision tree correspond to products;
computing, by the processor, the distance between leaf nodes of the product decision tree corresponding to at least two products to determine demand for a particular product in association with another product between the at least two products;
generating, by the processor, at least one business plan, wherein the at least one business plan is based upon the computed distance between leaf nodes and includes at least one of a product assortment plan and a pricing scheme; and
providing the at least one business plan to the at least one store for implementation.
2. The computerized method of claim 1 , wherein the product decision tree models consumer purchasing decisions for the at least one of the customer segments based at least in part on utilizing behavioral patterns of the at least one of the customer segments.
3. The computerized method of claim 1 , wherein the product decision tree models consumer purchasing decisions for the at least one of the customer segments based at least in part on exemplary statistical data relating to the at least one of the customer segments.
4. The computerized method of claim 1 , wherein the product decision tree models consumer purchasing decisions for the at least one of the customer segments at least in part by utilizing focus group information relating to the at least one of the customer segments.
5. The computerized method of claim 1 , wherein the product decision tree models consumer purchasing decisions for the at least one of the customer segments at least in part by:
receiving predetermined customer segment information from a retailer;
based at least in part on the received customer segment information, receiving focus group information comprising information regarding reaction of individuals to provided products or promotions; and
based at least in part on the received focus group information, extrapolating to a larger consumer group.
6. The computerized method of claim 1 , wherein the product decision tree models consumer purchasing decisions for the at least one of the customer segments at least in part by utilizing panel information relating to the at least one of the customer segments.
7. The computerized method of claim 1 , wherein the product decision tree models consumer purchasing decisions for the at least one of the customer segments at least in part by utilizing at least one of analyst reports, economic indicators and trade trends.
8. The computerized method of claim 1 , wherein the product decision tree models consumer purchasing decisions for the at least one of the customer segments at least in part by:
identifying data flagged as incorrect data; and
replacing the incorrect data based at least in part on utilizing exemplary statistical data relating to the at least one of the customer segments.
9. The computerized method of claim 1 , wherein the product decision tree models consumer purchasing decisions for the at least one of the customer segments at least in part by:
identifying missing Point Of Service (POS) data; and
filling the missing Point Of Service (POS) data based at least in part on utilizing exemplary statistical data relating to the at least one of the customer segments.
10. A system for generating a business plan, useful in association with at least one store, the system comprising:
At least one processor configured to:
receive modeling data, wherein the modeling data includes product data, customer data, constraints, and transaction data, and receiving the modeling data comprises:
reformatting the modeling data by aggregating elements of the modeling data and processing the aggregated elements together as a single element to reduce processing time of the at least one processor;
divide customers into a plurality of customer segments;
generate, by the at least one processor, a product decision tree using the modeling data, wherein the product decision tree models consumer purchasing decisions for at least one of the customer segments as a tree structure, and wherein leaf nodes of the product decision tee correspond to products;
compute, by the at least one processor, the distance between leaf nodes of the product decision tree corresponding to at least two products to determine demand for a particular product in association with another product between the at least two products;
generating at least one business plan, wherein the at least one business plan is based upon the computed distance between leaf nodes and includes at least one of a product assortment plan, and a pricing scheme; and
provide the at least one business plan to the at least one store for implementation.
11. The system of claim 10 , wherein the product decision tree models consumer purchasing decisions for the at least one of the customer segments based at least in part on utilizing behavioral patterns of the at least one of the customer segments.
12. The system of claim 10 , wherein the product decision tree models consumer purchasing decisions for the at least one of the customer segments based at least in part on exemplary statistical data relating to the at least one of the customer segments.
13. A non-transitory computer readable medium or media containing instructions for executing a method comprising:
receiving modeling data, wherein the modeling data includes product data, customer data, constraints, and transaction data, and receiving the modeling data comprises:
reformatting the modeling data by aggregating elements of the modeling data and processing the aggregated elements together as a single element to reduce processing time of a processor;
dividing customers into a plurality of customer segments;
generating, by the processor, a product decision tree using the modeling data, wherein the product decision tree models consumer purchasing decisions for at least one of the customer segments as a tree structure, and wherein leaf nodes of the product decision tee correspond to products;
computing, by the processor, the distance between leaf nodes of the product decision tree corresponding to at least two products to determine demand for a particular product in association with another product between the at least two products;
generating, by the processor, at least one business plan, wherein the at least one business plan is based upon the computed distance between leaf nodes and includes at least one of a product assortment plan, an and a pricing scheme; and
providing the at least one business plan to the at least one store for implementation.
14. The computer readable medium or media of claim 13 , wherein the product decision tree models consumer purchasing decisions for the at least one of the customer segments based at least in part on utilizing behavioral patterns of the at least one of the customer segments.
15. The computer readable medium or media of claim 13 , wherein the product decision tree models consumer purchasing decisions for the at least one of the customer segments based at least in part on exemplary statistical data relating to the at least one of the customer segments.