Developing a data-driven pricing analytics strategy
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…)
LONDON: Quantzig, a leading pricing analytics services provider, has announced the release of their new storyboard on pricing analytics solutions and how it can help companies boost their profit margins. With the shrinking product life cycles, customers have become more demanding and sophisticated. One wrong pricing move can cost businesses huge sums in terms of revenues. Moreover, determining demand fluctuations, monitoring competitors pricing in real-time, and identifying pricing triggers are some of the critical challenges that businesses of today face while trying to sustain their profitability.
Strategic pricing analytics solutions can help companies to create optimized pricing, discounting, and promotion strategies. It can also help companies to realize sales opportunities and drive conversions.
By leveraging pricing analytics solutions, companies can minimize price gaps, optimize discounts and prices, and benchmark prices against those of their competitors to maximize both sales and profit margins.
Quantzig’s analytics solutions have helped more than 55 Fortune 500 companies to make data-driven decisions and boost revenues. Below, we have rounded up some of Quantzig’s recent success stories for this week and have also highlighted ways in which strategic pricing analytics solutions have helped businesses to become market leaders.
#1: Realizing profits of over US$ 3 million with pricing analytics: Accurate evaluation of the impact of pricing and promotions decisions is a daunting task. Don’t you agree? One of Quantzig’s clients faced the same problem. They approached Quantzig to leverage its expertise in offering pricing analytics solutions to identify new ways of driving profits. Also, our pricing analytics solutions proved very helpful for the client in unveiling both short and long-term pricing improvement opportunities. Our strategic pricing analytics solutions helped them uncover factors that were driving sales.
#2: Why is snubbing pricing analytics a huge mistake?: Strategic pricing is one of the best ways in which industrial and consumer products companies can maximize their profits. So, ignoring strategic pricing analytics is not at all recommended for business leaders. Recent research shows that pricing analytics solutions and price management initiatives can boost a company’s margins by 2-7%, in a span of 12 months. Companies must, therefore, unlock the full potential of pricing analytics solutions to build a sustainable profit model.
#3: Pricing analytics improved the sales performance by 7%: This is one of the most significant success stories of Quantzig, where the client managed to gain strategic insights into price optimization across the entire product portfolio. This improved the sales performance by 7%. Moreover, price analytics solutions also helped the company to simulate scenarios and estimate how price changes will impact overall profitability and SKUs.
#4: Why does your company need pricing analytics?: With the use of pricing analytics solutions, it becomes easy for any company to save millions of dollars since they help in forecasting and measuring deviations against actual results to keep everything systematic. Also, strategic pricing analytics solutions help companies to closely monitor the market and anticipate the effect of promotional campaigns or price changes. Quantzig’s price analysis solutions offer accurate insights on pricing and help in identifying pricing opportunities by realigning discounts and highlighting unprofitable accounts.
#5: Leveraging predictive pricing models to boost profit margins: Do you really think developing predictive pricing models is a mystery? If yes, then you must go through our latest success story where Quantzig’s predictive pricing models boosted the client’s profit margins significantly. With predictive pricing models, it is easy gaining insights into the actual profitability of the products. Furthermore, pricing analytics solutions are very helpful when it comes to critical decision making by adjusting product portfolio with respect to state or local tax, price, supply chain, and production costs.
#6: Pricing analytics improved sell-through by more than 10%: Sell-through shooting up by 10%? Don’t you think that is significant for any business? Pricing analytics solutions have made it possible for one of Quantzig’s client by providing them assistance in identifying the financial impact of existing markdown practices and mitigate the negative impact on margins. Additionally, pricing analytics solutions proved beneficial in capturing lost margins and reducing the tendency to impulsively offer steep markdowns.
#7: Strategic pricing analytics helped in understanding competitors’ pricing structure: Is your pricing strategy hindering growth? If yes, then you must be going wrong somewhere in analyzing your competitors’ pricing strategy as compared to yours as it is very crucial for any business to attain success. This is evident in Quantzig’s latest success story, where strategic pricing techniques helped the client to gain actionable insights into the pricing techniques of the competitors. Furthermore, pricing analytics solutions paved the way to better segment target customers, boost the efficiency of their networks, and drive profitability.
#8: Pricing analytics solutions aided in profiling potential customer segments: Quantzig’s pricing analytics solutions helped the client to increase their focus on realigning their marketing mix to improve their overall profitability. Additionally, the unique price analysis techniques helped in identifying various ways to robustly position products against the competitors and examine the level of profitability across niche target segments. Furthermore, the effective pricing analytics solutions helped in gaining insights into the internal and external factors affecting the profitability of the industry at a granular level.
#9: Pricing analytics assisted in devising a better pricing structure: Customer profiling might sound scary, but you need not fear if you have strategic pricing analytics solutions in place. A leading firm in the telecom industry was dealing with the same issue but experienced a great change in their pricing structure by leveraging Quantzig’s strategic pricing analytics solutions. These solutions helped them to segment their customers properly and identify price points to devise a better pricing structure. Additionally, it made forecasting customer churn much easier and they were able to channelize marketing efforts in a much better way to improve their ROI.
#10: Pricing analytics solution helped to build a strategic pricing framework: Are you wondering how price points can trick your customers into making a purchase? Pricing analytics solutions can help as it helped one of the Quantzig’s clients. Pricing analytics can assist companies in gaining stock value, making discounts count, and increasing the overall business rating. Also, pricing analytics solutions have the ability to understand fluctuations in commodity prices and shifts in competitors and developing an overarching strategic pricing framework. This framework can furthermore help in identifying the target customers and gaining actionable insights into the products that are aligned with the cultural identity of the customers.
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