Pricing is one of the most crucial decisions that can make or break a business. Pricing decisions trigger a chain reaction across shopper perceptions and the company’s bottom line. As modern customers are incredibly savvy and can compare different products with the click of a button, traditional pricing practices based on past data and trends have become obsolete. The optimization of price points helps businesses drive conversion rates and identify new sales opportunities to drive growth.
Brick-and-mortar and e-commerce marketplaces alike are embracing the benefits of dynamic pricing models and price optimization solutions. This approach takes into account key pricing variables such as purchase history, competitor pricing, and inventory to assimilate the best prices, even for a vast catalog of products or services to achieve pre-determined KPIs.
Our pricing optimization experts can help you drive significant outcomes by automating price setting and embedding systemized capabilities into your day-to-day pricing processes. We offer a rich mix of fact-based statistical insights, using which business leaders can develop lucrative pricing strategies and, at the same time, be more proactive in adjusting price points with the dynamic market changes.
Dynamic Pricing Optimization
Pricing as a powerful profit lever. But it is often underdeveloped. Dynamic Price Optimization Models can be used to tailor pricing for target customer segments by simulating how they will perceive and respond to price changes with data-driven scenarios.
Quantzig’s dynamic price optimization model can help businesses determine the initial pricing, promotional pricing, and markdown pricing accurately to capture value and maximize profitability.
Perceived value analysis
Customers’ perception of a product or service plays a major role in influencing how much they are willing to pay. This is a critical marketing strategy that allows companies to set prices not just by evaluating costs and margins, but also another key factor- the perceived value of the product or service. The challenge lies in accurately determining the price points to satisfy the value perception of target customer groups.
Quantzig empowers businesses to drive value by analyzing the customer’s perception of the quality and desirability of offerings when compared to those offered by peers.
Price optimization empowers businesses to predict how their customers would react to different price points and price changes. We adopt a data-driven approach to price optimization – one which leverages predictive analytics, data mining, and AI-based methodologies to craft powerful promotional pricing, discount pricing, and substitute pricing strategies.
Optimization of price points also helps businesses drive conversion rates and identify new sales opportunities to drive growth. Using our price optimization solutions, you can not only optimize prices but also reduce price gaps and benchmark prices against competitor products to increase both sales and profits.
Our pricing analytics solutions can help you devise the framework for optimizing your brand’s pricing strategy via comprehensive measurement designs that reveal pricing opportunities and risks
Request a free proposal to learn how to optimize the trade-off between price, volume, and profit margins to maximize productivity and drive growth.
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