Tag: strategic pricing analytics

pricing analytics

Analyzing the Impact of Price Changes and Promotional Cadence Using Pricing Analytics – A Case Study by Quantzig

We recently completed an engagement for a Belgium based sports apparel retailer that demonstrates the significant revenue lift that retail chains can realize through markdown optimization and advanced pricing analytics.

About the Client

The client- a leading sports apparel chain based out of Belgium wanted to defend its market share against big-box, price-driven retailers in the region.

The Business Challenge

Growing competitive pressures and ageing inventory don’t just affect traditional retail outlets, online channels are equally susceptible. In such a scenario, optimizing pricing decisions represents one of the largest, multi-million dollar opportunities for organizations to drive incremental revenue. Our pricing analytics solutions empower businesses to make analytics-driven pricing decisions to support their strategic goals. Through our unique combination of advanced analytics, business intelligence, and robust pricing analytics frameworks we help our client to proactively address their challenges.

Though organizations understand the importance of data in making pricing decisions, many have not yet stepped up to the challenge of managing the huge volumes of data needed to get the pricing right. Request a FREE brochure of our analytics solutions to gain in-depth insight into the role of machine learning algorithms in driving better pricing outcomes.

Moreover, in today’s fast-paced business environment developing and implementing a robust pricing analytics framework is imperative. In our recent engagement, we collaborated with a leading sports apparel retailer who was concerned about optimizing prices to drive sales. They were looking at leveraging our pricing analytics solutions to develop a robust framework and better understand the impact of price changes and promotional cadence on the overall sales.

The retailer’s current approach to pricing relied on price forecasts and market trends that did not take into account important variables such as seasonality and promotional cadence. What added to the complexity was the sheer number of segments and brands within these categories and the inclusion of new products at the SKU level. The client was keen on gaining pricing visibility to analyze the cause of lost sales and quantify the price mismatches that led to a decline in sales.

Our pricing analytics experts can help you analyze the role of pricing in driving better business outcomes. Would you like to learn more? Contact our experts right away!

Solution Offered and Value Delivered

To help the client tackle their challenges we adopted a multi-faceted approach that leveraged pricing analytics and focused on integrating the five core pricing competencies- strategy, execution, governance, analytics, and technology. All of which are essential for capturing the full value of a pricing analytics investment.

Phase 1

The first phase of this engagement revolved around interpreting the point of sale (POS) data which was analyzed across four business indicators namely- weekly product prices, markdown dollars, product TDP, and sales volume. This holistic approach to understanding the factors driving sales and pricing helped the client to gain meaningful and actionable insights.

Phase 2

The second phase of this pricing analytics engagement focused on analyzing historic data to gauge the impact of seasonality and promotional sensitivities at the product level, which were later incorporated into the pricing analytics model.

Phase 3

The final phase of this pricing analytics engagement focused on devising and implementing suitable pricing analytics models to improve promotional cadence and pricing sensitivity. 

PRICING ANALYTICS

Gain limited time complimentary access to our analytics platform to see for yourself how advanced pricing analytics models and statistical techniques can help you make better pricing decisions.

The deployment of a robust pricing analytics framework helped the retailer to achieve over 15% improvement in their pricing and promotion investments while driving sales by 20%. The client also witnessed a 30% reduction in the price compliance effort amounting to a significant OPEX saving.

Why Choose Quantzig as Your Next Pricing Analytics Solutions Provider?

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pricing analytics

Analyzing the Role of Pricing Analytics Techniques in Setting an Optimal Launch Price for an Orphan Cardiovascular Drug – A Case Study on the US Pharma Market

The client is a leading pharma industry player who wanted to leverage value-based pricing analytics techniques to devise an optimal pricing strategy for the launch of its orphan cardiovascular drug.

The Business Challenge

In the face of stagnant healthcare budgets, an ever-growing demand for care, advanced pricing analytics techniques have the potential to drive value across the pharma value chain which included companies, payers, patients, and providers in advanced health systems. But to unlock the true potential of pricing analytics techniques, pharma companies must consider the outcome and factors that impact profitability before setting the new launch prices.

To devise an optimal pricing strategy in today’s competitive business scenario, businesses must possess a strong understanding of market dynamism and key value drivers that impact profitability and growth. Without a detailed understanding of such factors, businesses might fail to identify the optimal price for their drugs. Today most pharmaceutical companies struggle when it comes to leveraging pricing analytics techniques to identify the optimal price for their drugs. This, in turn, leads to poor launch performance which might seem quite challenging to overcome especially, in a scenario where sales expectations are higher than ever for new drugs.

Would you like to learn more about our pricing analytics solutions?

While preparing for the release of a new drug in the US market, a leading pharmaceutical company chose to partner with Quantzig to leverage its pricing analytics solutions to develop a robust pricing strategy. Being an orphan drug and the first indicated treatment for a rare cardiovascular condition the client lacked a basic understanding of the factors that impact pricing. They were looking at exploring the potential of pricing analytics techniques to set optimal prices.

The Solution Offered

We adopted a comprehensive three-pronged approach to help the client tackle the above-mentioned challenges. 

Phase 1

The initial phase revolved around conducting in-depth internal and external interviews to understand and analyze the importance of clinical and commercial factors impacting the payers’ decision-making process.

Request FREE proposal to gain in-depth insights on the benefits of our pricing analytics techniques.

Phase 2

The second phase of this engagement focused on analyzing and testing the acceptability of different price points and price structures to establish the key psychological thresholds. Also, by testing several pricing analytics techniques, it was possible to evaluate the impact of a price change on the prescribing behavior of physicians and payer restrictions.

Phase 3

The final step in our pricing analytics engagement focused on developing a pricing roadmap to align the obtained insights with the client’s business objectives keeping in mind the future needs of the business. 

The pricing analytics solutions also enabled the client to:

  • Make strategic and tactical pricing decisions
  • Prioritize three pricing analytics techniques to implement during the drug launch
  • Identified the optimal price that returned maximum revenue

Schedule a FREE demo to learn how a robust pricing analytics strategy can a differentiator in your market.

Benefits of Pricing Analytics

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Pricing Analytics Solutions: Boosting Profitability with Data in the Retail Industry

Despite recent advancements in technology and decision-support tools, companies in the retail industry are finding that the traditional approaches to devising pricing strategies are not keeping pace. Indeed, the new digital era stemming from pricing analytics and the explosion of omnichannel retailing has meaningfully changed the retail landscape and needs an overhaul of retailers’ pricing strategies and capabilities.

Are you finding it difficult to devise strategic pricing strategies? Our analytics solutions can help. Request a FREE proposal to gain detailed insights into our portfolio of pricing analytics solutions.

Pricing is a crucial driver of growth and neglecting it can affect the profitability of retail businesses remarkably. So, retail companies need to understand and analyze the price point for maximizing profits. This is where pricing analytics can come to the rescue. Companies can get as close to their target as possible, provided they utilize pricing analytics solutions and devise best-suited pricing strategies for their business. In this article, our pricing analytics experts have highlighted a few ways to help retail companies boost profitability, optimize price and discounts, minimize price gaps and benchmark prices against competitor products with the help of pricing analytics solutions.

In a highly competitive retail market driven by digitally empowered customers with paper-thin brand loyalty, and agile online competitors, pricing analytics is the key to stay ahead of the curve.

analyticsTips to Boost Profitability by Leveraging Pricing Analytics Solutions 

Analyze and track your competitor’s pricing strategies

Pricing analytics solutions can help companies in the retail industry to monitor and track competitor pricing in real-time. By leveraging pricing analytics solutions, retail players can also make changes to their pricing strategies by comparing it with that of the competitor’s strategy. This can, further, help them to improve customer retention rate and customer responsiveness. With the help of pricing analytics models, retail companies can proactively respond and immediate responses to the competitors’ marketing strategies.

Our analytics experts employ effective price analysis models to identify price triggers and factors affecting the price of your offerings. Get in touch with an analytics expert to know more.

Track price triggering points

With the increasing competition in the retail environment, today it has become crucial for businesses to track the price triggering points and factors affecting the demand of their products and services. Pricing analytics helps retail companies in developing capabilities to understand the factors triggering the price of a product or service and then tweak their pricing strategies accordingly. The analytics experts at Quantzig believe that the best way to track price triggers is by tracking the purchasing paths of the customers which provide clues to what changes in price need to be made.

To help businesses sustain themselves in a highly competitive marketplace, we track and monitor competitor pricing in real-time through our customized pricing analytics dashboards. Request a FREE demo below to gain better insights.

Understand price elasticity

Pricing analytics solutions can help companies in the retail industry to analyze past transactions and perform price segmentation to identify factors that influence price elasticity. Doing so can help retail companies to calculate the price elasticity for all price segments and select the one that maximizes profit and revenue. Consequently, companies can establish discounting strategies to remain competitive and improve their regional go-to-market strategies as well.

Develop robust pricing modeling capabilities

Disparate data sources, as well as market and category contexts, challenge a company’s analytical maturity. A one-size-fits-all cannot produce analytical rigor. Therefore, retail companies should leverage statistically validated pricing models to gain the desired business outcome. Pricing models  can help retail companies to determine price elasticity, cross-price elasticity, and pricing corridors that can influence sales, direct marketing promotions, and other deals.

Wonder how insights derived from pricing analytics solutions can help you make informed decisions? Request for more information now!

Weekly Round-Up: A Storyboard on the Benefits of Pricing Strategies and Infrastructure

LONDON: Quantzig, a leading pricing analytics services provider, has announced the release of their new storyboard on pricing strategies and infrastructure. These stories explain how robust pricing strategies and rigid pricing infrastructure can help companies to manage profitability and brand image.

Today businesses are facing critical challenges like monitoring competitors pricing strategies in real-time, determining fluctuations in demand and identifying pricing triggers while trying to sustain their profitability. Solid pricing strategies and infrastructure can help companies to optimize pricing, promotion and discounting strategies. Also, it can guide companies in identifying new sales opportunities, increase profit margins and drive conversions.

Quantzig’s analytics solutions have helped leading companies to make data-driven decisions and boost profitability. Below, we have summarized some of Quantzig’s free resources for this week and have also highlighted ways in which robust pricing strategies and infrastructure has helped businesses to excel in the competitive marketplace.

Are you finding it difficult to understand how pricing analytics solutions can help your business to reduce price gaps, optimize prices and discounts, devise effective pricing strategies and benchmark prices against the products of your competitors?  Get in touch with us right now!

#1. Why is pricing analytics important for your business? Pricing is a crucial component when it comes to product positioning and branding. Don’t you agree? This is the reason why robust pricing strategies have become the need of the hour for businesses today to stay competitive and ahead of the curve. Pricing analytics solutions can help companies make careful decisions on the margins to be reserved on particular products in relation to the competition. Also, pricing analytics empowers the companies to avoid costly mistakes by running advanced scenario modeling and identifies the potential impact of the change in price on the overall profitability and demand.

Are you wondering how to devise effective pricing strategies for your business? Request a free proposal to check out our portfolio of pricing analytics solutions.

#2. How can pricing automation help you achieve pricing mastery? Is the science of pricing strategies underdeveloped for your business? If yes, then you must give a thought to optimize your pricing strategies and this is where pricing automation can come to rescue. Pricing automation acts as a silver bullet to push your organization from the initial level of the pricing maturity scale to the level where your organization will be able to achieve pricing mastery.

Analyzing the feasibility of pricing analytics for any business is a daunting task. Our analytics solutions provide best-in-class frameworks for multi-dimensional data aggregation and price points optimization. Request a free demo for more insights.

#3. What are the benefits of next-generation price optimization? Are you wondering what is new era price optimization? New era price optimization covers entire stages of a product’s lifecycle in an integrated way right from the base price, promotions, TPR to markdowns. This helps in avoiding conflicts in pricing and forecasting demand accurately to maximize ROI. Next generation price optimization has huge benefits like ease of use, reveals the reasoning behind price recommendation and much more which helps in improving overall pricing strategies of the business.

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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…)

Weekly Round-up: A Storyboard on the Benefits of Pricing Analytics Solutions

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.

Alcoholic Beverages Pricing Analytics – A Quantzig Case Study

#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.

5 Reasons Why Snubbing Pricing Analytics is a Grave Mistake

#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.

How a Wine and Spirits Manufacturer Improved Their Sales Performance by More Than 7% with the Help of Pricing Analytics

#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.

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Wondering whether you should be leveraging pricing analytics solutions for your business?

Check out our complete portfolio of analytics solutions and choose what suits your business requirements. Request a free proposal today!

#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.

Quantzig’s Pricing Analytics Engagement Helps a Leading Frozen Food Manufacturer adopt a predictive pricing strategy and boost profit margin

#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.

Pharmaceutical Drugs Pricing Analytics – A Quantzig Success Study

#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.

Pricing Analytics Engagement: How a Healthcare Retail Client Assessed the Impact of Price Differentials on The Overall Market Share

#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.

Consumer Goods Company Leverages Pricing Analytics Solution to Profile Potential Customer Segments

#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.

Pricing Analytics Helps a Leading Telecommunication Provider Devise a Better Pricing Structure for the Services

#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.

Pricing Analytics Study Helps a Food and Beverage Company Build a Strategic Pricing Framework

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