Price Analytics: How Price Change Impact Assessment Helped a Leading Telecommunications Service Provider in Improving Pricing Decisions
The client: Telecommunications service provider, Size: >$80 billion in revenue, Area of engagement: Price analytics
The telecommunication industry is witnessing rapid growth, making it one of the fastest growing industries globally. A telecommunications service provider is most often a firm that provides telecom services for sending and receiving information through electronic devices. The services offered by them include text, email, fax, television, internet access, and radio.
Furthermore, telecommunications service providers offer services that are beneficial for organizations in establishing and developing a healthy relationship with customers. Also, the services offered by a telecommunications service provider help in enhancing the efficiency of data transmission.
Factors fueling the profit margins of telecommunications service providers include technological advancements, the emergence of new telecom technologies, growing demand for wireless communication, and demand for high-speed data processing. However, certain factors like high cost of value-added services and non-awareness among customers act as major constraints for telecommunications service providers.
The Business Challenge
The client, a leading telecommunications service provider with business units spread across the globe, found itself struggling to improve the pricing strategies of the organization. The client also wanted to predict the future and best prices to improve profitability. Therefore, they wanted to leverage price analytics by implementing a price change impact assessment to identify the possible factors that could be affected by the changes in pricing.
The Solution and the Business Impact
With the help of Quantzig’s price analytics solution, the telecommunications service provider gained detailed insights on the extent to which prices for their services can be improved. It also helped them develop appropriate pricing strategies to identify and prevent the gaps between current prices and those that can be theoretically achieved. Furthermore, our price analytics solution helped the telecommunications service provider to improve their pricing decisions.
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Price Analytics Predictive Insights
The complexity around pricing in today’s world presents several challenges for B2B organizations. Organizations struggle to maximize returns by making better pricing decisions without investing prohibitively high amounts of resources, time, and effort.
Quantzig’s price analytics solution helps telecommunications service providers in developing a robust pricing strategy, which acts as a catalyst for improving profitability and ensures that the brand’s price image reverberates through all marketing and promotional campaigns. Price analytics also plays a critical role in establishing a brand image as it helps them connect with end-users of their services. Furthermore, our solutions help firms to make better pricing decisions to improve overall profitability.
Telecommunication industry drivers:
Cloud offerings– Cloud-based platforms offer several opportunities for reaching out to new client segments, cost reduction, and CAPEX to OPEX transformation. It also helps in developing a digitally connected world, serving as the base for most of the social networks, OTT players, and even M2M platforms. Moreover, cloud not only enables telecommunications service providers to expand their businesses as cloud service providers, but it also fosters efficiency, as every telecommunications service provider benefits from outsourcing part of their non-core operations to external providers over the cloud.
Machine to machine and mobile money– Machine-to-machine and mobile money allow telecommunications service providers to pursue new revenue streams. While machine to machine involves machines at either end of the communication line, mobile money enables the transaction of several hundred or even thousands of Euros. However, both are considered to be major telecommunication industry forces that are expected to grow at an accelerated rate.