Analytics is the buzz word. Be it data analytics, predictive analytics, social media analytics, or healthcare analytics. Yet the fact remains that often businesses fail to utilize the inputs of these analytics in an effective manner, mainly because they lack the right insight and tactics to utilize the inputs. This situation is much more common in the case of pricing analytics. Pricing consultants often struggle with situations that can be easily managed if the data derived from the pricing analytics are employed intelligently.
Pricing Analytics and Why it Matters
Any business can boost its profit margins by almost 7% by adopting price management initiatives. Pricing analytics facilitates a better determination of the customer profitability and pricing strategy thereby acting both as a catalyst as well as a fruitful metric with which business strategy can be built. The insight provided by the analytics at the granular level enables executives to get a clear picture of both the internal as well as external factors affecting the sales performance of the company.
But due to a very weak foundation in analytics, several companies are unable to work through their complex channels, product portfolios, and gain the advantage of pricing analytics.
Contact our analytics experts to know more about pricing analytics and how you can leverage it for your business to stay ahead of the game.
Pricing Analytics: Enhancing Business
1. Knowing your Customer
Knowing your customer is the starting point of pricing strategy. But year after year so many companies fail in this process. The diagnostic tools in pricing analytics can help companies improve their overall performance by easily identifying the customer segment and aligning the pricing strategy accordingly.
2. Planning Prices, Discounts, and Promotions
For any company, planning the prices and launch of promotions is quite critical. Predictive models provide a perspective of the past based on which it gets a lot easier to draft promotion strategies and launch campaigns. Such models backed with pricing analytics hold a candle to what are the strategies one must refrain from product launches and revamp of the entire product line.
3. Identifying the Appropriate Pricing Opportunities
There are many occasions when the companies fail to make most of the “low hanging fruits” of their investments. Pricing analytics tools uncover all these hidden aspects and help the company get ‘quick gains’ in a very short period of time by considering the opportunities and overcoming inherent challenges.
