Tween retailer Justice, part of the Ascena Retail Group Inc., has extended its deal with First Insight for use of its InsightSuite, which is the technology company’s predictive analytics platform. Terms of the agreement were not disclosed.
Jason Judd, senior vice president of finance and chief financial officer of Justice, said tween segment is “fast-moving, and historical data often does not provide an accurate view as to the products our customers will want, or the prices they will pay next season.” Judd said the First Insight solution is helping the retailer do a better job of picking products as well as “pricing them right from the outset.” He added that the solution adds to the bottom line.
Greg Petro, chief executive officer and founder of First Insight, described Justice as being “in a unique position to continue to expand its business by identifying new potential customers and providing them with the products they want at the right price.”
The First Insight platform gauges consumer behavior by using online “social engagement tools” to gather real-time preferences as well as “pricing and sentiment data on potential product offerings.” The company then takes the data and filters it through its “predictive analytic models to determine which products present the greatest opportunity,” the company said.
“The solution will also enable Justice to determine optimal entry price points and forecast average unit retail prices before it introduces products to the market,” Petro added.
The extended deal with Justice follows a year of signing on new clients to the First Insight platform. Also, earlier this month, the company rolled out a new solution: ElastiCast, which is a price elasticity prediction tool. This platform aims to enable users to determine the most optimal product pricing and in turn, increase margins. Petro said ElastiCast “takes the guesswork out of pricing decisions with a real-time solution that can predict outcomes based on any price or point in time within a product’s life cycle.”
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