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New to SKU View: Elasticity and Enhanced Experiment Status

5 months 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

  1. 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.
  1. Products with a paused price experiment will continue to display "paused".
  2. 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.