Nielsen and JD.com announced a big-data product to help brands evaluate their pricing on the e-commerce platform and optimise their promotions to increase sales and profit margins.
The Online Pricing Optimizer (OPO) can analyze all the factors influencing consumer decision-making, according to Nielsen. It can reconstruct consumers’ shopping decisions, find the key factors that drive sales through pricing and promotion, [and] give professional suggestions that can be executed, thus enhance the brands’ promotional efficiency on the JD platform, the company said in a press release.
Combining Nielsen’s traditional pricing and analysis product with individual order data provided by JD, the product was developed by Nielsen’s analytical consulting department along with JD’s business development and cloud platform units. It leverages order and browsing data generated by more than 300 million active online consumers on JD, as well as Nielsen’s monitoring data.
The product can help uncover what products consumers compare with before making a shopping decision, the proportion of different promotions in the overall discount, and the impact of each discount on shopping decisions. The tool can also give reasonable suggestions for long-term and short-term pricing promotions.
“Nielsen found the accuracy of e-commerce analysis and predictions made based on store-level data stands at only about 25%," Andy Zhao, president of Nielsen China, said in the release. "In contrast, the forecast accuracy by Nielsen’s OPO...can exceed 75%."