Better Data. Smarter Decisions. Bigger Results.
Engage3™ is an advanced data analytics company that is revolutionizing the $12 Trillion global market for Fast Moving Consumer Goods (FMCG) with our Intent-Based Marketing Platform. Engage3’s data-driven SaaS solution provides unprecedented insight into what consumers intend to buy. This fundamentally changes how retailers and CPG manufacturers will price and promote. Engage3’s Intent-Based Marketing breakthroughs will generate a projected 300% ROI across the industry’s $200B in trade fund spending.
Engage3 delivers Better Data, Smarter Decisions, and Bigger Results.
Innovating retail pricing through data science
Engage3 is in a unique position to disrupt the status quo in competitive retail pricing data. The company’s founders, Ken and Tim Ouimet, literally grew up in the industry working for their parents’ company, Comparative Prices International, collecting in-store retail data for corporate clients. In the late 1990’s, the Ouimet brothers founded Khimetrics and pioneered retail price optimization as a new software category that revolutionized retail pricing and routinely delivered 1% of sales to profit for its clients, including, Albertsons, Safeway and Lowes.
After SAP acquired Khimetrics in 2006, Ken and Tim assessed the future of retail and saw a perfect storm forming through these emerging trends:
• Price transparency
• Smartphone adoption
• Personalization, and
• A hyper-competitive market that is being disrupted by new online models
They formed Engage3 to revolutionize retail through big data and advanced analytics to uncover the consumers’s intent-to-buy as the foundation for offer optimization.
The retail industry is going through a massive transformation that is being driven by higher expectations from consumers and a changing landscape for retailers and manufacturers.• Manufacturers are desperately in need of a more effective trade promotions model.
US CPG Manufacturers spend $200 B per year on trade promotions, 74% of these promotions lose money. (Nielsen) • Retailers are struggling to adapt to price transparency and empowered consumers.
Traditional Hi-lo and EDLP pricing models are becoming ineffective. • Consumers expect transparency and want to know that they are getting the best deal.
90% of consumers use coupons; 78% want coupons to be automatically applied. (Inmar)
With the population of Millennials now surpassing Baby Boomers, a new consumer profile has emerged with smarter, more empowered, and more demanding shoppers. They read ingredients and align with brand partners who share their personal values. They take full advantage of online and mobile tools to seek out product descriptions, reviews, ratings, and price comparisons. Technology is enabling the new consumer with always-on mobile access to the Internet and the ability to optimize their household budget.
International Data Corporation (IDC), the premier global provider of market intelligence for the information technology, telecommunications and consumer technology markets, recently released a report that cites Engage3 as an important innovator in this emerging market. The report, IDC PlanScape: Health Hearth Personal Services Web – Transforming Lives and Industries, analyzes how consumer personal technologies and the new mindset of mainstream millennialism (“their best experience anywhere sets their minimum expectation everywhere”) will impact food shopping and nutrition.
In addition to identifying large established companies such as Amazon and Google with a strategic presence in the Health Hearth Ecosystem, IDC highlighted Engage3 as one of only two start-ups that are poised to provide a solution in the ecosystem:
“Engage3 has its eyes set on fundamentally changing how food and household consumables are bought and sold. It is developing store-level product attribute transparency, intelligent content, and predictive analytics designed to meet the needs of retailers, brands, and consumers. Engage3 is focused on developing technology, processes, and networks to make store-level item prices visible to all market participants — retailers, FMCG companies, and consumers. It is aiming to reinvent pricing strategies with big data and analytics services. Finally, it is seeking to reinvent the promotional activities of retailers and FMCG firms with algorithmic discriminatory pricing, a technical economics term, akin to the algorithmic market for digital advertising.” – IDC Retail Insights, August 2015
In the midst of these exciting transformations are 100-year old pricing practices that throttle the potential positive business impact. Consumers expect price transparency yet the razor-thin margins in retail have perpetuated old pricing and promotion models. These traditional retail pricing practices have also contributed directly to the staggering inefficiencies of trade fund spending by manufacturers. According to Nielsen, 74% of trade promotions fail to breakeven yet the $200 billion trade fund budgets continue to grow every year as the ROI steadily declines. Engage3 is powering innovative new solutions to these problems by harnessing big data and advanced analytics.