Tag: price optimization

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.

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What is price optimization?

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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…)

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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…)

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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.


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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

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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.

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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.


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Quantzig’s Pricing Analytics Helps a Renowned Client in the Beverage Industry Compare their Pricing Trends

The client: global beverage producer

Area of engagement: Pricing analytics

The global beverage industry is witnessing a radical shift toward a more customer-centric environment with the rapidly changing consumption habits of the consumers. The growing urbanization coupled with the rising disposable income is expected to fuel the growth of the industry. The beverage industry comprises of alcoholic and non-alcoholic drinks with majority of the shares contributed by the APAC region. Apart from the growing demand among the customer segments, additional factors such as the growing acceptance of alcohol by customers, population base of the young generation, and increasing per capita incomes can further contribute to the growth of the beverage industry. Although the beverage industry is witnessing a considerable growth, owing to the gradual increase in the number of leading-edge players, several factors may influence the growth of the industry. They include:

Growing health-conscious population: In the recent years, the growing concern for health and wellness is compelling consumers to switch to nutritional choices such as fruit juices to remain healthy. The shift toward the more health-conscious environment is forcing prominent organizations in the beverage industry to bring innovations in their product offerings to meet the fluctuating consumer demands.

Rising competition: With the intense competition taking place in the beverage industry, many leading players are offering a distinguished set of products. To remain competitive and stay relevant in the marketplace, leading organizations should offer products based on the tastes and preferences of the customers. Moreover, government regulations are also forcing organizations to comply with certain norms set by the government before offering their products to the target audience.

To address these challenges and position their products efficiently in the beverage sector, organizations are utilizing the need for a pricing analytics solution. Pricing analytics helps businesses gain a clear understanding of the internal and external factors affecting the profitability at the granular level. The pricing analytics solution also focuses on setting pre-determined prices for the products based on market conditions and target margins.

The Business Challenge

In the US, craft beer is the fastest growing segment in the alcoholic industry which is nearly triple the growth of wine and spirits industry.

The client, a renowned client in the beverage industry, wanted to understand the impact of price differentials on the market share. With the help of a pricing analytics solution, the client wanted to seek ways to estimate the impact of pricing on the market volume. The client further wanted to identify potential ways to estimate the price-change triggers based on the customer behavior. The primary concern for the client was to estimate the effect of pricing on the market fluctuations and find relative ways to enhance their returns on investments. The solution also aimed at identifying the potential opportunities and realign their prices to spur the margin levels.

Pricing analytics

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The Solution and the Business Impact

The pricing analytics solution offered by Quantzig helped the client in the beverage industry leverage the use of predictive modeling to manage prices and promotions. The client wanted to implement full-fledged profit optimization tools to optimize pricing and promotion strategies. Moreover, the solution also sought ways for the client to relatively compare the prices of the products with that of the competitors and rely on analytics to get the pricing right. Moreover, the pricing analytics solution also focused on realigning their traditional marketing mix to have a direct impact on profitability.

Pricing Analytics Solution Predictive Insights:

The solution offered by Quantzig helped the beverage industry make pricing decisions based on data to understand the market context. The client was able to build strong pricing capabilities to better achieve a positive impact on the bottom line. Moreover, the pricing analytics solution also offered a customizable pricing solution to the clients to achieve better returns on their marketing investments. Since price becomes the major concern for the majority of the customers; the pricing analytics solution sought ways to position products properly against the competition and analyze the profitability across niche target segments.


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