Innovator Profile: SalesBeat Leverages AI To Predict Consumer Behavior and Help Retailers Maintain Optimal Inventory Levels

Introduction

The Coresight Research team will attend and participate in this year’s Groceryshop conference, which will be held on September 19–22, 2022, in Las Vegas, US. Groceryshop 2022 will explore the changing grocery landscape and help businesses navigate the rapid rise in e-commerce, the latest business models and technologies, and the shifting consumer behaviors that are impacting the industry.

On September 19, 2022, Deborah Weinswig, CEO and Founder of Coresight Research, will emcee and feature on the judging panel of Groceryshop 2022’s “Shark Reef” startup pitch competition, which will see 12 early-stage innovators compete to win the Judges’ Choice and Audience Choice awards. In the lead-up to the event, we are profiling the participating innovators.

This report forms part of our Innovator Profile series, which focuses on emerging technologies that are disrupting traditional retail and fueling innovation across the retail value chain. We present SalesBeat, which offers a CPG platform that uses AI to model consumer behavior and make predictive recommendations for optimal in-store stock levels. Coresight Research collaborated with SalesBeat to offer insights into its capabilities and offerings.

Areas of Innovation

Coresight Research categorizes the 12 participating innovators into three areas of innovation in retail: fulfillment and sustainability; product marketing and merchandising; and AI, ML (machine learning) and automation. SalesBeat falls under “AI, ML and automation.”

Advances in AI and ML are enabling the technologies to be applied to a variety of retail operations, such as marketing and pricing. Technology innovators focused on AI, ML and automation can help brands and retailers reduce costs, improve efficiency and convenience, enhance personalization and more.

SalesBeat: In Detail

Headquarters

New York, New York, US

Funding Stage

Pre-seed

Total funding raised: $562,000

Company Description

Founded in 2019, SalesBeat provides a software platform for brands and retailers to manage optimal in-store inventory levels based on consumer behavior patterns. The platform uses AI to model consumer behavior and make recommendations for specific stock levels across different CPG products and stores. SalesBeat’s platform analyzes stock traction and provides insights on companies’ target consumers, product categories and stock-keeping units (SKUs) by individual store—reducing stock waste, out-of-stock issues and lost sales.

SalesBeat’s platform provides various reports (as shown in the image below), such as overstock reports, which outline recommendations of optimal promotions and activities to deplete current overstock. Other reports include reorder reports, which include reorder quantities for each SKU by store, and market and category reports with insights on competitors, target consumers and the category overall.

What Problem Is the Company Solving?

Managing optimal inventory levels across multiple stores can be challenging due to shifting consumer shopping behavior and the unpredictable nature of supply chains, among other factors. Overstocking can lead to product waste, especially with food items, and lower profit margins via markdowns and product disposal costs. Product disposal due to overstocking also contributes to landfill waste, a serious sustainability issue. Meanwhile, understocking can lead to lost revenue from missed sales.

With SalesBeat’s platform, brands and retailers can receive real-time insights and recommendations on stock levels and product promotions, allowing them to rid themselves of overstock and reorder popular products.

Market Opportunity

There is a need for dynamic forecasting software, as many organizations today are still using infrequent and outdated methods to analyze and forecast in-store inventory levels: 82% of North America-based retailers update their forecasts once a month, while almost six in 10 (57%) rely on Excel-based forecasting of last year’s trends or instinct-based forecasting, according to a June 2021 Coresight Research survey.

Brands and retailers should leverage predictive AI technology that quickly analyzes shopper data and consumer trends to provide reliable recommendations on dynamic strategies, such as promotions, to reduce overstock and the ordering of routinely out-of-stock products. Coresight Research’s June 2021 survey found that 52% of retailers that use dynamic strategies for promotions optimization have achieved increased sales of 5% or greater.

What We Think

Rapid shifts in consumer shopping behaviors alongside changes in social, economic and geographic climates and dynamics make maintaining inventory levels challenging, especially when relying on antiquated prediction models. We believe brands and retailers should leverage innovative technologies, including AI-based prediction models, to help forecast shifts in consumer behavior and maintain optimal in-store inventory levels, therefore maximizing revenue based on demand.