New to SKU View: Elasticity and Enhanced Experiment Status
about 1 year ago by Spresso
Feature release - November 17th, 2023
Introducing additional metrics and insights to SKU View on the Catalog Page:
1. Price Elasticity
View new SKU level metric for Price Elasticity. This is the price elasticity of demand for a product or how a change in price affects the demand for a product. Elastic items are price sensitive, while inelastic items are not.
This metric is only available for items that have been added to an experiment campaign:
- Elastic: Shoppers display price sensitivity for this item. Spresso Generative Pricing will find the price that maximizes revenue while preserving profitability.
- Inelastic: Shoppers do not display price sensitivity for this item. We recommend increasing your max. price window to maximize profitability.
2. Enhanced Experiment Status
- Products with an active price experiment will display one of the below statuses:
- Learning: When a price experiment has less than 1000 impressions since it launched. This is when an experiment is collecting initial data.
- Exploring: When the price experiment has over 1000 impressions since it launched but none of the price arms have over 51% of traffic. This is when Spresso generative pricing is working to find the optimal price based on the experiment strategy.
- Monetizing: When one of the 5 price arms hits 51% of traffic and the price experiment has over 1000 impressions since it launched. This is when spresso generative pricing has found an optimal price based on the experiment strategy.
- Products with a paused price experiment will continue to display "paused".
- Products that do not yet have a price experiment will display opportunity.
- This opportunity amount is the predicted amount lost in sales over the last 30 days by not price optimizing this product. This amount is based on a standard experiment strategy with a balanced profit weight.
