Empowering Category Growth with Data
Transform raw transaction data into customer-driven insights, classifying each product category into one of four distinct roles, so you can tailor your assortment, pricing, and promotions to real buying behaviors.
Empowering Category Growth with Data
Transform raw transaction data into customer-driven insights, classifying each product category into one of four distinct roles, so you can tailor your assortment, pricing, and promotions to real buying behaviors.
Category Role Model
Precision’s Category Role Model takes the guesswork out of product planning by using customer buying behaviors to classify every category into one of four roles. These insights empower you to optimize assortment, pricing, and promotions – driving revenue growth, improving margins, and reducing excess inventory. The result? A focused action plan that boosts growth, protects margins, and keeps inventory lean.
Improve Product Mix with Behavior Based Product Segmentation
How It Works
Pull Key Transactional Metrics
Precision works with you to pull key transactional metrics from your sales data by order, including SKU counts, order frequency, and spend distribution.
Apply Advanced Clustering
We then apply advanced clustering techniques to group products into four roles based on actual buying behavior: Destination, Occasional, Routine, and Convenience.
Analyze Role-Specific Variables
Finally, we analyze role‑specific variables – such as percent of order dollars, exclusive purchase rates, and order cadence – to uncover actionable opportunities.
Put Your Data to Work
Utilizing your internal sales data, we help you build a category action plan to optimize revenue growth, improve margin, and reduce inventory.
- SKU Count per Order: How many items from each category land in a typical basket
- % of Order $ from Category: Revenue share by role
- Order Frequency: How often customers purchase products in each category
- Exclusive Buyers: Share of customers who buy only from that category
- SKU Mix Intensity: Proportion of SKUs from a category per order
- Purchase Consistency: Average months with orders and variability
Your Competitive Edge
With the Category Role Model, you gain a clear, data‑backed roadmap for product strategy, ensuring every category plays its ideal role in your growth plan.
- Pricing: Tailor price points to optimize profit based on the role’s value proposition – premium for Destination, competitive for Routine, etc.
- Assortment: Align your shelf or portfolio with role based demand – expand offerings in Occasional, streamline in Convenience, etc.
- Promotion: Design targeted campaigns and use merchandising tactics to drive profitability – drive trial in Routine, reinforce loyalty in Destination, etc.
Implementing the Category Role Model leads to better decisions by taking into account actual purchase behavior and the importance of adapting strategies as conditions vary.
Discover how to apply the Category Role Model in your business and start maximizing your product mix.
Discover the Model Behind A Smarter Category Strategy
See how Precision’s Category Role Model helps growing businesses optimize pricing, promotions, and inventory by using real data to guide decisions. Learn how your products can be grouped into strategic roles, each with its own best practices. Whether you’re trying to boost margins, streamline your product mix, or sharpen your pricing strategy, this model shows you exactly where to focus. Watch the video to see how data-driven clarity leads to better results.