About the Client
A major brand in the home furnishings retail sector in Germany.
The Business Challenge
An uncertain economic environment, the rise in new product launches, technological disruptions, and a highly informed and demanding customer base are just a few among the many challenges faced by retailers today. To thrive and stay prepared for the future retailers should consider tapping into the vast datasets to answer crunchy questions that are essential to improve performance in these demanding times. Also, these challenges are directly linked to pricing analytics and the strategies adopted by businesses, which in the real world is a powerful lever that improves a company’s top-line and bottom-line performance. With the proliferation of shopping channels and a decline in customer spending, effective pricing strategies have become a target source for retailers looking to grow organically. While retail industry players realize the critical importance of pricing analytics to drive profitability, identifying the pricing strategies that drive growth still seem to be a daunting task.
The client, a leading player in the German retail industry found itself struggling to improve profitability and demand in a highly complex environment. Hence the retailer approached Quantzig to leverage its pricing analytics expertise to test their in-retail market price elasticity. They wanted to evaluate their pricing strategies to determine the extent to which it had been a drag on their performance. Like the client, many retail companies have reached a point where they realize the importance of data in making decisions, but many haven’t yet stepped up to the challenge of managing data needed to get the pricing right. However, until you do step up, your business may not be able to capitalize on the full potential of pricing analytics. (more…)