As industries evolve and business model changes, so do the risks involved in these industries. In the insurance industry, price connotes value, and understanding how to effectively price their products and services helps insurance companies to understand their customers’ lifetime value. In order to meet the needs of the consumers, businesses across the globe are leveraging the use of solutions that focus on price point optimization and enhance customer satisfaction. With the help of an effective price optimization strategy, companies can understand how businesses in the insurance services space define their profitability and improve their retention levels. Moreover, leading insurance services providers can further retain the most profitable customers and improve their brand loyalty. In the insurance services space, price optimization helps businesses identify the customer segments with a higher probability of cancellation. Furthermore, price optimization can further help companies efficiently estimate the elasticity of demand and cost models to predict prices for the services offered.
Get in touch with our experts to learn how we can help you streamline complex pricing decisions and drive continuous improvements with advanced price optimization models.
To identify the impact of price changes on customer satisfaction levels, leading insurance providers are approaching companies like Quantzig. Quantzig’s pricing optimization strategy helps insurance companies to develop a better pricing strategy and spur profitability.
The Business Challenge
A leading insurance services provider was facing certain predicaments effectively tailoring the pricing structure for specific customer segments. The client wanted to improve profits, profile competitor’s prices, and product availability. Moreover, with the help of our price optimization solution, the insurance services provider wanted to create a better business value proposition and guide the price optimization process. With the help of price optimization, the client wanted to seek ways to monitor results accurately and continuously improve pricing.
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Benefits of the Price Optimization Strategy
The price optimization solution offered by Quantzig helped the insurance services provider to determine initial pricing, promotional pricing, and discount pricing for their products and services. The engagement also aimed at introducing new services to bolster revenues and profit margins. To stay relevant in this competitive market, the client wanted to develop a great pricing strategy to curtail declining sales and falling profits. With the help of Quantzig’s price optimization strategy, the insurance services provider wanted to assess the competitor’s effect on the price elasticity of the services rendered.
Additional Benefits of the Solution Offered
- The insurance services provider experienced up to 10% improvements in profits and revenue lift ups
- Gained a better return on investment
- Constantly kept track of the price-performance and recommended prices that will improve profits
- Efficiently forecasted demand for the services rendered and developed promotional strategies