Will Instacart’s new acquisition change pricing and promo strategies for retailers and CPGs?
Instacart yesterday said that it has acquired Eversight, an artificial intelligence (AI) supported pricing and promotions platform for consumer packaged goods brands and retailers.
Eversight, which was founded in 2013, has created a platform that enables CPG brands and retailers to test customized pricing and promotions on an individualized basis with consumers at scale.
The use of AI enables the automation of a process that had been previously done manually and at a great time cost. Eversight’s technology for CPG brands takes real-time custom insights and turns them into targeted promotions that drive purchases. Retailers using the tech are able to run “micro price point experiments” across their ranks of customers.
Instacart believes that the addition of the technology will provide an opportunity for its partners to transform their pricing and promotional strategies.
“CPG brands and retailers will have access to new individualized and customized pricing tools and dynamic insights via Instacart that connect the dots between online and offline behavior to improve sales and growth, along with customers’ experiences, no matter how they choose to shop,” according to a company release. “This creates a flywheel effect in which goods are priced at the sweet spot that drives more sales and growth for CPGs and retailers — all while unlocking even better promotions and pricing for customers.”
Fidji Simo, CEO of Instacart, said that the technology will be a welcomed addition for consumers at a time of high inflation.
“Giving everyone access to the food they love is core to Instacart’s mission, and when it comes to grocery shopping, we know that every dollar matters,” said Ms. Simo. “With higher inflation and the average cost of groceries up, we’re taking even more steps to make food and daily essentials more affordable.”
Instacart plans to incorporate Eversight’s CPG product into its Instacart Ads suite to provide brands with measurable ad opportunities and insights. The retail tech will become part of the enterprise-grade solutions offered on the Instacart Platform through the company’s Carrot Insights data dashboard.
“It’s critical that we’re delivering the right promotions to the right consumers. Eversight’s real-world, real-time insights help us find the price point or promotion that resonates with our consumers and leads to a purchase,” said Lynn Hemans, VP consumer intelligence & analytics for The Hershey Company.
DISCUSSION QUESTIONS: What impact will Eversight’s technology have on the pricing and promotional practices of retailers and CPG brands on the Instacart platform? What will it mean for consumers?