Redwood: Use AI Services with Your Pricing Promotions

Use an AI service with the pricing promotions that you set up in Oracle Pricing. The service can provide promotion details to an AI agent that presents suggestions about how to promote, upsell, and cross sell items on sales orders.

Realize these benefits:

• Get a personalized promotion according to context. For example, order a printer and the agent can suggest a discount for ink.
• Cross sell and upsell. Get a recommendation for an add-on or a bundle while you create the sales order and increase the order's value.

In earlier updates, Pricing automatically applied promotions to sales orders according to the item on the order, eligibility conditions, and additional buy items.  Pricing can now use AI to return a set of ranked recommendations for a promotion through Oracle Order Management's Sales Promotion Advisor agent. The recommendations apply specifically to each sales order, and they can help you increase revenue and customer satisfaction. 

Here are some example recommendations:  

• Get a $50 discount when you buy a quantity of 5 or more of the Glorious Bouquet item.
• Get a 10% discount on the order total when use the Immediate payment method.
• Get 5% off when you use the Next Day Air or the 2 Day Express shipping method.
• Get a 10% discount on electronic items when you purchase more than $1,000 worth of electronics on the sales order.

Each recommendation includes a summary about the promotion and details about the criteria that you must meet to get the promotion. This example has three recommended promotions:

The Promotion Summary section includes a list of ranked recommendations. Each recommendation includes the promotion's name, a summary, and the criteria that you must meet to get the promotion:

• Promotion 1. Buy a monitor and get a free keyboard. 
• Promotion 2. Pay immediately and get a 10% discount.
• Promotion 3. Buy a quantity of 30 and get a 30% discount. 

Pricing ranks the promotions in the Promotion Summary section numerically: 

• Ranks a promotion that applies to all items higher than one that applies to only a single item.
• Ranks according to how relevant the item's description is on the sales order to the item's description on the promotion.
• Ranks according to the item's category on the sales order compared to the item's category on the promotion. Pricing considers the product catalog's hierarchy when it does this ranking.

Pricing identifies the promotions that you have set up in the Pricing Administration work area that are in effect and that are eligible according to attribute values in the sales order. It uses these attributes:

• Customer
• Customer Account
• Pricing Strategy
• Business Unit
• Billing Address City
• Billing Address County
• Billing Address State
• Billing Address Country
• Billing Address Postal Code
• Billing Address Province
• Shipping Address City
• Shipping Address State
• Shipping Address Postal Code
• Shipping Address County
• Shipping Address Country
• Shipping Address State

Pricing doesn't expect you to modify them to meet eligibility.

Pricing looks at these attributes that you can modify to influence eligibility:

• Order Total
• Shipment Method
• Payment Terms
• Unit of Measure
• Line Quantity
• Line Amount

It also looks at these attributes to determine whether the sales order meets the criteria for an additional buy item:

• Total Buy Item Quantity
• Total Buy Item Amount

Pricing also considers the Promotion Code.

If you don't want to include a promotion as part of the recommendation, then you can use the new Exclude from Recommendations attribute in the Pricing Administration work area:

Steps to Enable

If you already set up your promotions in the Pricing Administration work area, then you don't need to do any additional set up there, but you must set up the AI Agent: Sales Promotions Advisor feature.

You can also set these order management parameters:

• Number of Recommendations to Display. Specify how many recommendations the summary displays. It comes predefined with a value of 3.
• Item Details to Display in Offers. Specify whether to display the item number, item description, or both of them.

Tips And Considerations

• Consider which promotions you want to include in the recommendations. Start with simple promotions and test them first, then include more complex promotions.
• A recommendation can apply to the entire sales order. For example, according to a minimum value in the order total. It can also apply to one order line. For example, according to a value in the shipment method.
• This feature supports the existing pricing promotion behavior from earlier updates, such as a simple discount, tiered discount, free items, and discounts according to other items or to an item category on the sales order. 
• If the agent recommends a tiered discount, then it recommends the first tier that qualifies.
• Ranking doesn’t consider eligibility conditions or the criteria for additional buy items.

If you expect a recommendation but don't see it, then there could be some criteria that the sales order doesn't meet, such as:

• Various eligibility conditions, such as the order total, payment terms, or shipping method. Pricing evaluates payment terms and shipment methods on the order line, not the order header.
• Criteria for an additional buy item, such as Total Buy Item Quantity or Total Buy Item Amount.
• A promotion code.

This feature is separate and works independently of these features:

• Pricing Promotions (Redwood Experience), Update 24C
• Redwood: Apply Pricing Promotions According to Pricing Strategies and Payment Terms, Update 24D
• Redwood: Create Promotions That Add Free Items, Update 25A
• Redwood: Apply Promotions According to Items on Sales Orders, Update 25A
• Redwood: Use Promotion Codes to Apply Promotions On Order Lines, Update 25B

There are some known issues that will be fixed in subsequent updates:

• If a line's quantity and an eligibility condition's unit of measure exists for a promotion, and if that condition's unit of measure has the same value that the item's unit of measure has on the order line, then the summary might display the same recommendation twice.
• If you modify the sales order's currency to a value that's different from the pricing strategy's currency, and if the promotion applies a tier discount according to amount, then the agent will select the wrong tier.
• The recommendation might display a tier again even after you apply a promotion.

Key Resources

• Manage Pricing Promotions
• Use Pricing Promotions With Sales Orders
• Use Promotion Codes to Determine Whether Orders Are Eligible for Promotions
• Redwood: Use Promotion Codes to Apply Promotions On Order Lines
• AI Agent: Sales Promotions Advisor
• Manage Order Management Parameters
• How do I use AI Agent Studio?

Access Requirements

Users who are assigned a configured job role that contains these privileges can access this feature:

• Manage Draft Pricing Promotions (QP_MANAGE_DRAFT_PRICING_PROMOTIONS)
• Manage Pricing Promotions (QP_MANAGE_PRICING_PROMOTIONS)
• View Pricing Promotions (QP_VIEW_PRICING_PROMOTIONS)
• Activate Pricing Promotions (QP_APPROVE_PRICING_PROMOTIONS)

For access requirements in Order Management, see AI Agent: Sales Promotions Advisor.