Crafting Customer-Centric Pricing Experiences
About the Company
Jeffers Pet was founded in 1975 inDothan, Alabama as a local catalog of animal care supplies delivered door-to-door by theJeffers family. By 1999, they expanded into ecommerce and remain one of the largest, privately held animal supplies companies. Today JeffersPet has $50M in annual revenue and are ranked #10 in Newsweek’s2023 Best Online Shops list in the pet supply category.
Jeffers Pet scaling their business meant larger revenue goals, and the Jeffers team looked at all facets of their business to achieve those targets.Because they carry a wide-range of animal care assortment, from feeding and grooming supplies to seasonal vaccinations and deworming schedules, pricing was at the top of their list.
Flexible Solution for All Strategies
Pricing Intelligence allows each campaign and each SKU to have its own business strategy and target goals. Given the expansiveJeffers Pet assortment, the Jeffers team ran multiple, simultaneous campaigns with various strategies.They covered the range between profit optimization to move end-of-season products, to growing velocity and expansion of new SKUs.
Grow Velocity Strategy
+64% in Conversion and +41% in Sales Lift
A selection of SKUs with the goal of accelerating sell-through while maintaining profit targets (based on 5/9-5/30 data). SKUs in this campaign performed within profit targets while achieving the following sizable sales growth.
Exploratory Strategy
+14% in Conversion, +36% in Sales Lift and +44% in Profit Lift
A selection of SKUs with the goal of Spresso-automated exploratory optimization to generate a balanced lift in both revenue and profit (based on 5/9-5/30 data).
Better than an A/B Test
One of Jeffers Pet’s earlier concerns was the amount of effort and time it would take to run campaigns. Price optimization allayed those worries.It always functions better than an A/B test, minimizing regret in real-time by testing multiple price points and automatically shifting traffic to the highest performing price as the experiment gathers data. It takes cost into account for the profit-leaning strategies, while respecting retailer pricing rules such as MSRP (manufacturer’s suggested retail price) and MAP (minimum advertised price).
With generative pricing, Jeffers Pet was able to achieve its goal of adoption of a pricing strategy optimized specifically for the JeffersPet customer, thus freeing the business from reliance on competitive price scraping.The implementation of Price Optimization proved to be indispensable for revenue growth and sustained triumph in the animal supply industry.
