At Locayta we’re really proud of our Freestyle Merchandising® innovations. We’re not ashamed to admit it either. Not because we want to blow our own trumpet – but because we know from extensive feedback that our search and merchandising tools drive revenue, conversions and order values for clients. At the end of the day that’s what we’re here to do.

We’ve talked a lot in recent months about the different facets of our search, merchandising and product recommendation technology. But there’s one piece of kit we particularly like to showcase because of the value it adds to ecommerce business strategies. That’s Locayta Balance Factor®. We mention it frequently – but every so often we like to stop and take a look at this bespoke technology in detail, demonstrating some of the practical benefits it can have for ecommerce retailers.

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What is Balance Factor?

Balance Factor is a key feature of Locayta’s search and merchandising suite. It’s been developed by our programmers on a bespoke basis and is a unique registered technology. It underpins many of the customer-facing functions of Freestyle Merchandising.

The purpose of Balance Factor is to ensure that whilst you’re showing your customers the products they most want to see, you’re also showing them the products that you, the retailer, most need to push. That’s important, because it can help you optimise your stock levels, sales revenue and ROI.

Let’s take a look at some specific examples of Balance Factor in action:

Maximising profits

All manner of factors can affect costs across your supply chain – and of course those costs will affect your profit. A typical example might be overseas manufacture. If economic factors suddenly affect the cost of your raw materials then you might need to take a look at your lines and re-distribute your profit margins to compensate for any discrepancy.

balance factor in actionEnter Balance Factor. All you have to do is log into the simple dashboard, define the lines and products that you hope will come to the rescue, and tell Balance Factor by what percentage you want to prioritise those listings in results and displays. Your customers will still enjoy the same high grade web performance they expect, but will be shown those lines and products first to maximise your profit.

Handling fluctuating stock levels

Logistics and fulfilment can be a funny old game. The only predictable element is that something unpredictable is likely to happen. So when you find yourself with unexpected stock levels it can be tricky to handle.

You might have received more returns than you expected on a certain line, and find yourself with high levels of reconditioned stock to clear. You might find that a particular line is proving slow to push, and want to up the ante and get that stock moving faster. You might need to clear stock quickly to make room for new incoming lines in your warehouse.

Whatever the situation, this is an area where Balance Factor can really make your ecommerce site work hard for you. You can configure and adjust exactly how you want your stock prioritised, then sit back as Balance Factor throws that into the mix every time results are displayed across your site.

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Keep your brand suppliers happy

If you’re a multi-brand retailer then maintaining those relationships is vital for business. So when you’re in negotiations with a current or potential brand supplier, being able to guarantee them prime position is bound to pique their interest and encourage a profitable relationship.

In this instance we’ve got two tools at your disposal. You can instruct Balance Factor to prioritise the brand in question by whatever percentage you choose. But you can also use Locayta’s Brand Adjacency tool (part of the visual merchandising features set) to control which brands appear near each other and – crucially – to keep brands apart when required.

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Balance Factor can be used in conjunction with Locayta’s entire search, merchandising and product recommendation tool kit. It’s easy to set up, configure and run. But the real beauty lies in your ability to look at anything that’s happening in your business and respond with touch-of-a-button changes behind the scenes to make sure that you ecommerce site is delivering the best performance it can – not just for your customers, but for your business.

Want to know more? Take a look at our 5 minute tour, or contact the Locayta team directly for tailored advice and a detailed look at what Freestyle Merchandising can do!