Discount Prediction



Discount Prediction is the forecasting of optimal discount rates for customers, driven by analysis of historical discount usage, purchasing patterns, and customer behaviors. By utilizing AI, Shimoku´s Discount Prediction empowers businesses to tailor discount offerings to individual customers, maximizing sales while preserving profit margins. This data-driven approach enables businesses to efficiently allocate resources, optimize revenue generation, and ultimately enhance customer satisfaction.

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The challenge

Businesses often struggle with determining the optimal discount rates to offer customers. Offering discounts too liberally can erode profit margins, while being too conservative may result in lost sales opportunities. Traditional methods of discounting rely on manual decision-making or simplistic rules, which may not take into account the full range of factors influencing customer behavior and profitability.

The Solution

Shimoku's Discount Prediction solution, powered by AI, revolutionizes the way businesses approach discounting creation. Our solution analyzes historical sales data, customer preferences, purchase patterns, discounts acceptance, and other demographic factors to predict the optimal discount rates for individual customers. By accurately forecasting the impact of discounts on conversion rates and profitability, businesses can make informed decisions to maximize sales while maintaining healthy margins.

Benefits of Implementing Shimoku´s Discount Prediction
Maximized Revenue 

Offer discounts strategically to incentivize purchases and product or service renewal without sacrificing profitability, maximizing revenue generation.

Improved Customer Satisfaction

Provide personalized discounts tailored to individual customer preferences, enhancing the overall shopping experience.

Enhanced Margins

Optimize discount rates to maintain healthy profit margins while driving sales volume and customer acquisition.

Reduced Discount Abuse 

Prevent misuse of discounts by targeting offers to customers who are most likely to respond positively, minimizing revenue leakage.

Uploading Historical Data

Get started by uploading historical sales and customer data, including transaction history, customer profiles, purchase details, and discount usage. Our platform will analyze this data to build predictive models that forecast the optimal discount rates for individual customers.

Unlocking Growth Opportunities

Once the Discount Prediction model is trained, leverage the insights gained to optimize discounting strategies and unlock growth opportunities. Identify segments of customers who are most responsive to discounts and tailor offers to maximize conversion rates and customer lifetime value. The model outcome will present a list of customers ranked by their likelihood of purchasing a specific product, alongside the corresponding discount with the highest probability of acceptance for each customer. Additionally, each customer will have an associated explanation detailing the factors influencing this scoring.

Optimize discounting strategies

Identify segments of customers

Explanation detailing the factors

Analyzing the Drivers & Barriers Behind Discount Prediction

In the world of AI, the concept of Explainability has emerged as a core of trust and transparency. While AI models are incredibly relevant, their intricate architectures can often operate as "black boxes," making it challenging for users to understand their underlying mechanisms and decision pathways. Explainability in AI aims to demystify these processes, offering clear, intuitive insights into how algorithms arrive at specific outcome. This is not just about technical transparency but about building a bridge of trust between AI and users. Gaining an understanding of how AI models work will enhance your confidence in the system, encourage broader adoption, and ensure alignment with business goals.

Our solution offers an Explainability layer, providing clear insights into the factors driving the model's predictions, enabling you to understand the key drivers influencing discount prediction. By pinpointing both drivers and barriers indicators, you can customize strategies to optimize conversion rates and enhance customer lifetime value. Gain insights into the critical factors shaping customer purchasing decisions and identify potential barriers to conversion. With actionable insights, businesses can refine their discounting strategies and improve overall sales performance.

From Insights to Action

At the core of our solution lies an Actionability layer that bridges the gap between data insights and tangible business outcomes. At Shimoku, we firmly believe that the true power of AI lies not just in understanding data but in leveraging it to drive meaningful actions within a company's operations.

With traditional analytics solutions, businesses often find themselves drowning in a sea of data, struggling to derive actionable insights that can drive real change. Our approach flips this paradigm on its head by not only providing valuable insights but also empowering businesses to swiftly translate these insights into concrete actions that drive monetization and efficiency.

Our solution utilizes Generative AI technology to automate the creation of recommendations and offers tailored to customers with a high probability of accepting discount offers. Each customer receives a personalized discount offer designed to optimize conversion rates and enhance customer satisfaction. Gone are the days of generic, one-size-fits-all promotions or outreach. Our AI solution analyzes customer data and model outcomes to craft automatically hyper-personalized discount offers tailored to each individual which are then seamlessly delivered to them via email or other communication channel.

Fast Integration with Your Tech Stack

Seamlessly integrate our Discount Prediction solution with your existing tech stack through our API, including eCommerce platforms, CRM systems, and marketing automation tools. Our platform is designed for easy integration, allowing businesses to leverage AI-driven discount predictions within their existing workflows.

Maximize the Value of AI With Our Help

Start maximizing your Average Order Value and LTV today with Shimoku's Discount AI solution.

Join the hundreds of companies already leveraging the value of AI and increasing their revenue with Shimoku. Complete the form and discover how we can help your business.

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