How Vera Bradley Profits From Big Data

Pricing Optimization
In addition to improving its email program, Vera Bradley is using big data to optimize its pricing. With the help of First Insight, a product testing platform provider, Vera Bradley has revamped its pricing strategy to focus on pricing products based on consumer value and competitive positioning. Big data insights that Vera Bradley now factors into its pricing include competitive set analysis (i.e., what are its competitors charging for similar products), margin analysis and "what would they pay" online consumer engagement campaign data. Within that consumer testing, Vera Bradley is also collecting the percentage of favorable and unfavorable responses to the MSRP, the model price the consumer would pay for the item, and qualitative data as well. All of this data helps Vera Bradley price a single item.