The price management module helps you to optimize a consumer portfolio's overall profit, margin or contribution. pricing optimization for retailers delivers profitability today and is fully integrated with our routine market control and marketing systems, addressing disputes and limitations within a single tactical pricing approach. Unlike other revenue optimization products, we can optimize regular and promotional prices on demand, either separately or simultaneously, considering each other's effects.
Value-based pricing and consumer segmentation
All consumers are different, so when doing this research, which ones do you worry about?
First, choose a customer who has bought from you and conduct the test. Then choose a client that hasn't bought from you (hard to find) and do it again. Customers who buy from you and those who do not otherwise value your offer.
As a marketer, the consumers who trust your products should be your target market. These customers should be priced. You may want to lower the price if you're trying to reach a wider market. A better strategy, however, could be market segmentation.
Retailer cost management approaches
Portfolio Pricing Optimization : The problem retailers need to ensure that they are factoring in all product interrelations when prices change. Determining which products and how many of them need price changes is challenging. In addition, a price change can sometimes damage KPIs rather than fuel them. The retailer causes a chain reaction across a community of' neighboring' items in the shoppers ' view by raising a price on one item.
The Solution: The retailer needs optimization templates that take into consideration both product elasticity and its cross-elasticity with associated products, to maximize the KPI of choice in a portfolio level, whether volume, revenue or profit. An elaborate equation combines all these coefficients and provides an optimum price solution throughout the portfolio of the retailer. With this optimization model, the retailer uses the so-called ' differentiated ' recommendations for pricing across selected products to predict and maximize the target portfolio – volume, income or profit – for each SKU.