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Price Optimization

3 Ways to Improve Retail Price Optimization Strategy

In today’s competitive business landscape, retailers are looking for new methods to improve their operational efficiency. Retailers struggle to find the right balance between optimizing profits and maintaining traffic. This is where an effective price optimization strategy can help retailers to develop healthy margins and good traffic. However, retail companies tend to struggle when it comes to optimizing their pricing strategies. Challenges such as trying to quickly adapt to new technologies and reprice against behemoths act as an obstruction in devising retail price optimization strategies. In this article, our analytics experts have listed out some of the effective ways to improve price optimization strategy that can help retail companies in better and quick decisions and retain profitable customers.

Quantzig’s pricing analytics solutions help businesses to drive conversions and realize sales opportunities. Request a FREE proposal to gain in-depth insights into our portfolio of pricing analytics solutions.

How to Improve Retail Price Optimization StrategyHow to Improve Retail Price Optimization Strategy?

Evaluate Strengths and Weaknesses

To devise effective price optimization strategy, companies in the retail industry must first take into consideration what effect SKU prices will have on operations and evaluate their organization’s strengths and weaknesses. This strategic approach of initially looking into own strengths and weaknesses is important to get a clear picture of which strategies are to be executed. To evaluate one’s strengths and weaknesses, retailers need to collect historical data, including product volumes, prices and promotions, competitors’ prices, economic conditions, product availability, seasonal conditions, and fixed and variable cost details. Such details can help retailers to clearly outline their company’s strengths and weaknesses. Furthermore, this can help companies to drive both value and self-interest. Also, it initiates the wisdom and clarity of how pricing affects all aspects of operations and has a direct correlation to profits and revenues.

Our pricing analytics experts help companies create optimized pricing, promotion and discounting strategies. Get in touch with them right away!

Don’t Just Size Up the Competition

To improve price optimization strategy, retailers still focus more on the competitors’ pricing strategy. But to truly achieve competitive pricing, retailers must assess the bigger picture, not just their competitors’ prices. Using price optimization metrics, retailers don’t just size up the competition, they size up the competition against their strengths and weaknesses. This helps in creating a list of opportunities and threats in the overall market. Also, it offers detailed insight into competitive data and helps to understand how competitive data is going to affect profits and revenue.

To help businesses sustain themselves in a highly competitive marketplace, we track and monitor competitor pricing in real-time through analytics dashboards. Request a FREE demo to know more.

Define Your Pricing Strategy

After evaluating own strengths and weaknesses, businesses can outline the threats and opportunities based on the competition and market. This can help in defining a clear pricing strategy and can assist in understanding how well the perceived value is suited to the needs and wants of each customer. Furthermore, defining pricing strategy can help businesses to achieve revenue goals, marketing objectives, win target audience, improve brand positioning, and product attributes.

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Price Optimization

Price Optimization Case Study: Empowering Businesses to Boost Revenue by Enhancing Pricing Strategies

A leading logistics and transportation services provider based out of Germany approached Quantzig to leverage its expertise in price optimization to address the mounting inaccuracies in their spot market pricing methods and estimations. The implications of their inaccurate pricing strategies resulted in a sharp dip in the revenue generated from the truckload shipment segment in the corresponding spot markets and also led to a rise in the cost of securing capacity.

The Business Challenge

Like any other industrial segment, the logistics and transportation industry is currently witnessing a plethora of changes that have bought in new opportunities. However, the introduction of new technology, business models, and pricing strategies have further complicated the market landscape, making it difficult to sustain a competitive advantage. The client a leading logistics and transportation services provider was looking at leveraging price optimization models to generate price benchmarks to achieve certain business objectives. They were looking at deploying price optimization models that would help them enhance their ability to forecast price fluctuations and devise robust pricing strategies.

The increasing complexity of global supply chains signifies that you should be well aware of your expenses and use price optimization models to better track and control spend. This is where you should be cautious, as adopting a wrong approach to price optimization can leave your organization far short of its savings goals. Contact our price optimization experts to know more.

Solutions Offered and Value Delivered

To help the client tackle their core challenges, the price optimization experts at Quantzig adopted a comprehensive approach that helped them implement better pricing strategies to improve their profits. A detailed analysis helped our experts to delve into the intricacies of the clients’ challenges and understand the perspective of the investors. The solutions offered by our experts enabled them to leverage pricing optimizations models to redesign their pricing strategy. The implementation of new pricing strategies further empowered them to enhance the accuracy of their prediction by 35% and generate predictions for a much broader range of shipments and equipment types.

In addition, the new price optimization strategy enabled the client to view data updates in real time, reducing the error rates and prediction variances. With price predictions consistently closer to the actual negotiated shipment price, the client was able to negotiate prices better aligned to the real market clearing equilibrium price. As a result, the company is now better positioned and well-equipped with robust optimization models to set proper margins, reduce error rates, and improve overall revenue. Moreover, the price optimization solutions and recommendation proved to be effective in bringing down price variances of their shipments by a whopping 46%, leading to the generation of additional revenue.

Want more information on the benefits of price optimization models? Get in Touch right away!

What is price optimization?

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IR30

Pricing Analytics: Reasons Why it’ll Help You Crush the Competition in 2019

In 2019 one of the key questions for business leaders is how can the pricing lever be used to boost their business growth ambitions? As we are aware even a 1% improvement in price can impact a company’s bottom and shoot profitability significantly. But, the most daunting task is to make sense of dynamic pricing data and unstructured products and services. Most businesses fail to utilize the benefits of pricing analytics and pricing data and tend to take a back seat when it comes to determining the right strategies to enhance their product pricing.

Pricing is the most important driver of growth and neglecting it can affect the profitability of business remarkably. But, companies need to understand what the perfect price point for profit maximization is. And this is where pricing analytics comes into the picture. Companies can get as close to their target as possible, provided they utilize pricing analytics solution to its best and devise best-suited pricing strategies for their business.

At Quantzig, we understand the impact that pricing analytics can have on your business. And to help companies excel in the competitive landscape, our team of experts has provided a detailed guide on the importance of pricing analytics. This can assist businesses to optimize prices and discounts, minimize price gaps, benchmark prices against competitor products and finally can boost their ROI.   (more…)

customer analytics

Top 3 Benefits of Price Optimization in Retail That Can Make Huge Difference

Have you ever observed why a customer at youContact USr shop leaves after observing and looking at the products for some time? It is because he/she has found a better deal somewhere else or online. Therefore, the price is an important factor influencing the buying decisions of the budget conscious shoppers today. However, the intense competition for the shoppers’ wallet doesn’t leave much room for errors in your pricing strategy. For every SKU in the store, you need to strike that magical number to drive sales and profitability. Thus, price optimization in retail is very crucial for the players in the game. It helps regulate and control pricing decisions across every category and product type. With the use of price optimization in retail, the process of identifying the correct price for a product has witnessed a paradigm shift from rudimentary tools and ‘gut-feelings’ to real data-based facts. Price optimization in retail involves the use of demand modeling and ‘what-if’ analysis to estimate the impact of pricing on sales, performance, and then fixing a price that works best for the objectives of your retail business. Below, you’ll find a list of essential benefits that can be realized through the use of price optimization in retail. (more…)

IR36

Quantzig’s Price Point Optimization Assists a Corporate Insurance Company to Improve Profitability Through Better Pricing Decisions

The client: Corporate insurance firm

Area of engagement: Price Point Optimization

Leading players in the corporate insurance industry are increasingly focusing on improving top-line sales while bolstering their bottom-line profitability. However, there are numerous challenges standing in the way of the corporate insurance firms. Notably, not all of these challenges are within the industry’s control such as catastrophe losses and rising interest rates. But what is well within their authority is how effectively the insurers adapt to the changing circumstances both operationally and strategically, to differentiate themselves in the market.

There is a rise in customer expectations and disruptions that are bringing about several changes to the overall market scenario.  Here are a few factors that are expected to bring about significant transformations in the corporate insurance sector over the next few years:

  • Technological advancements: Technology permeates every aspect of the insurance process, from online purchases to filing claims and communicating with insureds, to the products and services insurers provide. With rapid technological advancements and improvements in mobile technology, it has become easier for insurers and their insureds to communicate; thus, bringing significant changes to the customer service dynamics. The use of technology also helps insurers in streamlining their processes and offer seamless services to its customers. Also, through the use of IoT and other features like connected homes, connected phones, and connected devices, it becomes evident that there is a plethora of information which should be harnessed, sorted, and used by insurers. This helps in providing key metrics and demographics, which assists in the development of new products and services.
  • Data security: Since there is no limit to the extent of data that can be captured via social media, telematics, the internet, and other such sources, the corporate insurance firms face significant challenges in protecting the captured data. However, the major concern is that the use of the collected data could infringe on civil liberties and personal privacy. Moreover, thought the data offers insights on improving customer services levels, the main advantage lies in the insurance firm’s ability to use the information and develop products and services that suit the needs of its customers.QZ- Request free proposal

The Business Challenge:

The client, a leading player in the corporate insurance sector with an international presence, wanted to gain a holistic view of customer decisions and determine new strategies that would help them improve their decision-making capability. The client was looking at developing enhanced pricing strategies to sustain themselves in the growing competition.  The organization’s primary concern was to distinguish different customer needs and profiles and formulate sophisticated approaches that recognize the need for pricing decisions. Moreover, the client also wanted to improve profitability through better pricing decisions and set the most appropriate rate for each customer to maximize revenue within constraints.

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The Solution and the Business Impact:

The price optimization solutions offered by the experts at Quantzig helped the corporate insurance firm in reducing the overall prices and restore the profile of its customers. Our solutions also enabled them to introduce differential pricing based on customer risks. With the help of our price optimization solutions, the client was able to develop an overall pricing strategy, which helped them in generating a higher level of profit within its business constraints. Moreover, the price optimization solutions offered also helped the corporate insurance firm in assessing the trade-off between competing objectives and implement individual customer decisions to meet the business goals.

Price Optimization solution insights:

The key to a successful pricing strategy lies in predicting the effect of various price approaches on the overall profit as well as on each of the trade-off dimensions. Our price optimization solutions help you keep track of the price performance and recommend a price, which is most likely to improve your overall business performance. Moreover, our solutions also benefited the client in developing promotional strategies by forecasting the demand for the services rendered.


To know more about how our price point optimization helped the corporate insurance company

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Retail Healthcare Client Increases Profitability Levels using Price Point Optimization Solution

retail healthcare

LONDON: Quantzig, a global analytics services provider, has announced the completion of their latest price optimization solution for a retail healthcare client. The existence of retail healthcare clinics can either complement or threaten a few segments of the healthcare system including hospitals, government healthcare facilities, and pharmaceutical equipment manufacturers. Therefore, many leading retail healthcare companies have recognized this trend and started expanding critical care offerings while increasingly partnering with national pharmacies and retailers to establish walk-in retail healthcare outlets.

“Price optimization solutions help firms calculate the demand for products and services at different intervals and scales. Also, using price optimization solutions help retail healthcare businesses to forecast the demand and improve customer satisfaction levels,” says an expert at Quantzig.

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The solution offered helped the retail healthcare client to gain real-time actionable insights into the customer’s buying patterns. The solution also helped the to client define profitability levels and comprehend the sensitivity levels of the existing customers.

 

Additional Benefits of the Price Optimization Solution

  • Assign temporary prices for products and services to spur sales for items with longer life cycles
  • Devise robust pricing strategies to enhance customer satisfaction
  • To know more, request a free proposal

To know more about how our price optimization solution helped the retail healthcare client

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data and analytics

Quantzig’s Price Point Optimization Assists a Retail Healthcare Client in Increasing Profitability

The client: Healthcare retail company

Area of engagement: Price Point Optimization

A very few things in the global healthcare sector can be as potentially disruptive as retail healthcare or retail clinics. Their very existence could either complement or threaten a few segments of the healthcare system including hospitals, government healthcare facilities, and pharmaceutical equipment manufacturers. As a result, several leading healthcare sector companies have recognized this trend and started expanding critical care offerings while increasingly partnering with national pharmacies and retailers to establish robust walk-in retail healthcare outlets.

However, several factors are influencing the growth of the retail healthcare sector across the globe. These factors include:

  • Technological impact: The recent rapid technological advancements have made it easier for companies in the retail healthcare sector to handle large-scale businesses while catering to the needs of consumers. Additionally, the use of online marketing platforms is driving the retail healthcare industry towards a future with high growth prospects.
  • Value for money: Typically, a well-organized retail healthcare store deals with high volumes, offering a range of drugs and medical services at a reasonable price; thereby, attracting customers on a large scale. This also creates an excellent opportunity for retailers to achieve more profits and enable new sub-groups to enter the sector.

These factors are compelling retail healthcare firms to leverage the use of price optimization strategies. Price optimization solutions help firms calculate the demand for products and services at different intervals and scales. Price optimization solutions also help firms combine data across different data sets with information and inventory levels to achieve robust pricing strategies and enhance current profit margins. QZ- Request free proposalPrice optimization also assists retail healthcare businesses in forecasting the demand and improving customer satisfaction levels.

The Business Challenge

The client, a retail healthcare major with business operations spread across the globe, wanted to understand the impact of price differentiation across customer segments and devise robust pricing strategies to enhance customer satisfaction. With the help of price optimization strategies, the client also wanted to collect historical data including the company’s pricing, competitor’s prices and promotions, and economic conditions to frame better initial pricing, discount pricing, and promotional pricing strategies.

Want to learn more about our analytics solutions?

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The Solution and the Business Impact

With the help of Quantzig’s price optimization solution, the client gained real-time actionable insights into the customer’s buying patterns. This helped them devise strategic ways to retain their most profitable customers. Additionally, the client was able to set temporary prices for products and services to spur sales for items with longer life cycles. The price optimization solution further helped the retail healthcare client define profitability levels and comprehend the sensitivity levels of the existing customers.

Price Optimization Solution Predictive Insights

The retail healthcare client identified customer segments with a higher probability of cancellation with the help of Quantzig’s price optimization solution. Furthermore, the client efficiently forecasted future renewal rates for their clients as they gained a detailed analysis of the market in which the company operates.


To know more about how our price optimization solution helped the client in the retail healthcare space?

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