In today's competitive retail landscape, strategic pricing decisions can make or break profitability. This lightning talk demonstrates how Databricks clients can harness advanced analytics and machine learning to transform their promotional pricing strategies from gut-feel decisions to data-driven science.
We'll showcase a live promotion pricing application that solves two critical challenges: identifying which products to promote and determining optimal discount levels. The solution leverages causal elasticity modeling to understand true price sensitivity while accounting for confounding factors like seasonality and competitive dynamics. A sophisticated deep learning forecasting engine then simulates multiple discount scenarios, predicting revenue, margin, and volume impacts.
The application is built in Sigma and leverages Databrick's Model Serving API to get real-time forecasts.
Session Type: Lightning Talk
Session Track: Analytics and BI
Technologies: MLFlow, PyTorch, Unity Catalog
Industry: Retail and CPG, Food, Travel and Hospitality