Pricing and promotion effectiveness for Prezzo
We used data science to analyse and improve their pricing and promotion strategies. The result was hyper-targeted customer offers, and more suitable menu pricing tiers across their entire estate.
Challenge
Prezzo are a british owned italian food chain, with over 180 branches across the UK. Recognising the need to stay relevant in a highly competitive restaurant industry, they chose Satalia to help them improve the effectiveness of their promotions and pricing strategies.
Outcomes
>1%
increase in revenue, gained solely from adjusting menus across select locations
Sales
hyper targeted issuance of promotions to relevant customers increased sales
Outcomes
>1%
increase in revenue, gained solely from adjusting menus across select locations
Sales
hyper targeted issuance of promotions to relevant customers increased sales
Solution
We categorised customers by their behavioural attributes and used supervised learning to identify a relationship between customer behaviour and their propensity to various promotions. This enabled the hyper targeted issuance of promotions and offers to relevant customer segments, maximising their effectiveness and driving sales.
In a separate project, we used unsupervised clustering techniques to find commonalities between branches, and suggested a new menu tiering based on the impact of different menus on sales in mvarious locations. Projections show that the new menu tiers have resulted in a 1% increase in revenue.