Improve Profitability with Pricing Analytics and Strategy Optimization
Using pricing analytics to optimize pricing decision-making represents one of the largest, multi-million dollar opportunities for companies to drive incremental sales and profits. With an effective pricing strategy, it’s not uncommon for companies to:
- Achieve 15 – 20% improvements in price and promotion investments
- Drive 1 – 3% increases in sales
- Obtain 2 – 5% margin enhancements
Successfully implementing the results of predictive pricing models can help you reach or exceed these targets, but often this “low hanging fruit” opportunity goes unpicked, and sales opportunities and profits are lost.
Unlocking Profit Opportunities with a Pricing Analytics Solution
Many companies lack the required level of visibility into the profitability of their marketing mix, products and customers. And without a clear picture, it’s easy to miss opportunities and make misguided decisions.
Ipsos MMA’s pricing optimization solution provides companies with answers to fundamental pricing questions, giving them more accurate insights to drive decisions and successfully predict and measure outcomes.
- What are the right price points to maximize sales and profits?
- How often should I price promote and at what depth to achieve my sales and profit targets?
- What items are synergistic that can be bundled and promoted together for incremental sales?
- What is the impact of competitive pricing on my brands and competitive brands?
- How does the category respond to changes in pricing levels and what is the impact on sales and traffic if the category and/or key brands/products take price increases/decreases?
- What price thresholds and price gaps pose the most risk to my sales and brand position?
- What is the impact of price promotion on brand equity?
- What is the right amount of price promotion and marketing activity? Which activities can be bundled to produce the best results?
- How should I price against specific consumer segments and create price tiers and/or zones to optimize sales and share in specific markets?
- What is the pricing sensitivity to my own and competitive products that will result in switching?
- What is the economic and operational effect on pricing and how should I react?
- What is the best pricing architecture for my product portfolio given competitive and category trends/pressures?
- How do I develop strategies that maximize short- and long-term brand growth objectives?
Pricing decisions impact virtually every part of an organization. Ipsos MMA’s strategic pricing analytics solution enables companies to improve their understanding of the impact of pricing decisions and make more informed and forward-looking decisions across the organization. The result leads to higher sales and improved profitability.
Executing Effective and Profitable Pricing Strategies
Ipsos MMA provides clients with a solution designed to support winning on the pricing battle fronts. The goal is to not only provide a rich mix of fact-based, predictive statistical insights, but also to enable those insights by connecting them to the marketplace. By understanding what will happen under various conditions, companies, by way of a pricing simulation tool, can prepare, plan and enact more effective and profitable pricing strategies. Clients are also armed with the information needed to respond to competitive threats and challenging market conditions quickly and proactively.
- Consultative insights and value proposition: By closely working with cross-functional business teams, MMA develops predictive analytics and embeds them within easy-to-use pricing simulation software. This data enables teams to war game and plan for various real-life and target scenarios in order to reach sales and profit objectives.
- Powerful, real-time pricing simulation software and scenario planning capabilities: The ability to conduct real-time “what if scenario” simulation activities across brand and competitive products allows our clients to understand the direct implication of pricing actions on sales and profits for their own brand as well as competitive items.
- Predictive statistical models: Custom client-specific models incorporate a rich set of data enabling an expedited understanding of what will happen, when and where based upon different real and planned pricing scenarios.
- Integrated price and promotion data platform: Data is collected at a granular level by Ipsos MMA’s professional data management personnel. The data is collected, cleansed and harmonized in a powerful database that acts not only as a modeling and pricing analytics platform, but also as a database for developing rich and insightful business reporting.
- Experienced consultative support and value: Count on partner-level insights from experienced predictive analytics consultants who work collaboratively with clients to assimilate the predictive insights into ongoing business processes that support value creation.