BI solutions for Pricing Analytics easily handle large amounts of unstructured data calculating millions of what-if scenarios allowing companies to leverage price and manage trade spend.A company can increase its margins by 2 to 7 percent in 12 months and drive 1% - 3% increase in sales, resulting in ROI between 200 and 350 percent by implementing predictive Pricing Analytics.
This game changer is often not utilized by companies due to lack of insight into the intricacies of their own complex customer segments, sales channels and product portfolios. Poor data collection practices is another reason. When there is no hard data to help management in the decision making process, in some cases, outdated techniques and gut instinct are used instead. And even though the right call might have been made, opportunities to fine-tune the pricing are missed, potentially costing millions of dollars and more.
Predictive Pricing Analytics give you true insight and an action plan to start answering questions like these:
What are the right price points?
How often should I price promote?
What should my pricing strategy be short and long term to achieve overall brand objectives?
What price thresholds are dangerous for my brand positioning?