Advanced Tertiary and B2B services (insurance, telco, media, financial institutions)
We can help players operating in the advanced tertiary and B2B services sectors to incorporate in their decision-making processes the best practices of pricing that we have successfully developed in various business to business sectors.
Value for customers
Although large players are already using quantitative models and algorithms for some of the decision-making processes (eg customer churn, cross-up selling, risk indicators) few of them have really evolved pricing processes through the use of data.
By developing more advanced segmentation and pricing indication models and implementing the correct pricing metrics, advanced service sector players can achieve economic results that are difficult to achieve with other types of improvement programs
Areas of Opportunity
The main decisions and challenges companies need to face to improve profitability and successfully compete on the market.
How to improve profitability with pricing?
With the development of pricing processes (segmentation and guidance systems) that leverage machine learning models and internal skills, it is possible to significantly increase profitability
Using a segmentation based on customer features is not enough. With the use of quantitative models it is possible to evolve and simplify the segmentation considering product features, customers, volumes in a given way to determine the actual propensity to pay
How can we use historical data to improve segmentation for pricing?
How to engage the sales force in pricing projects?
To develop the full potential for improvement it is necessary to "engage" the sales force with the correct pricing metrics and with the correct non-monetary / monetary incentive systems.
How can we take a more proactive approach to customers?
Through the use of quantitative models it is possible to predictively determine the customers who require corrective actions based on the present / potential value and behavioral variables
How we help our customers
Pricing capability diagnostics
Quantitative / statistical assessment of historical data
Data-driven segmentation development
Business rules and price target
Deal scoring tool
Decision-making processes and delegations
Pricing index metrics
Training
Deployment on ERP / CRM / BI
Pricing - insight
Development of business rules and pricing guidelines
Training and communication (work-session)
Training on pricing communication / negotiation techniques
Review of delegation processes
Development of pricing skills for the sales force
Quantitative / statistical assessment of historical data
influencing factors of the price index
Classification or regression algorithms
Segmentation calibration (input management and vendors)
Internal survey (sales force)
Worksession with sales management
Segmentation for pricing with machine learning models
Cross & up selling
Customer health score
Margin risk alert indicators
Prescriptive pricing / volume / mix reporting
Real profitability per transaction and per customer
Customer micro-profiling on behavioral analysis