Regardless of where you sit in the retail ecosystem – manufacturer, wholesaler, vertical brand, cataloger, or department store – your business depends on predicting how consumers will respond. Each product, pricing, packaging image and description (as applicable) decision entails risk. To date, incorporating consumers into the decision process, Voice of the Consumer, has meant adding delays to already tight schedules and paying a premium for high touch services.
SoundOut takes a different approach. SoundOut puts the power to validate your product related decisions in under 24 hours. With the testing available on a SaaS basis or via direct API integration, you can validate many more decisions at marginal cost - translating directly into reduced risk and higher margins.
SoundOut’s platform delivers the highest quality responses in the market. By combining sophisticated advanced analytics with a 3m strong proprietary panel, SoundOut’s results are highly accurate (or in statistics speak – representative, reliable, and predictive).
By driving down the cost of testing while ensuring the quality of the results remains high, SoundOut enables companies to test more products test more often. With SoundOut clients can afford to test different images or CADs, different packaging ideas, and different product descriptions. Existing SoundOut customers have seen double digit increases in demand and/or price perception for the same product by simply using a different image or description.
Our research has shown that vertical brands and manufacturers really know their customers and often do better than the Pareto principle in predicting success (i.e. the 80/20 rule). However, in an industry with extremely tight margins, even a 90% success rate is not good enough because the cost of errors (usually measured as either markdowns or out of stocks) drops directly to the bottom line and quickly eats into profits.
E-commerce and endless aisle allows companies to offer their customers a much broader selection. But this also means a heavier workload on evaluating designs, selecting assortments, and deciding what to promote. SoundOut customers can grow their product selection without growing their staff by leveraging testing as a “first pass” so that scarce resources only spend their time on the products likely to do well.
Working With Us
SoundOut is a fully automated solution offered on a standalone SaaS basis – either via the SoundOut platform or via a simple API integration. Initial setup is a collaborative process ensuring that outputs are delivered into the client workflow in a timely and appropriate manner.
SoundOut APIs are also available for third party retail platforms (PLM, assortment planning and ERP), enabling partners to white label the SoundOut offering and seamlessly bring the consumer to the heart of their customers’ existing workflow in real time.
The impact of discounting
Discounting accounts for 25% - 30% of a typical fashion retailer’s overhead
This is 5 times the net margin
Reducing the average discount by just 2% (to 23%) would increase net margin by 40%