How we used competitor monitoring and price
30%
increase in sales
15%
directly attributed to the new positioning
THE SITUATION
The world of B2C is not what it used to be. New entrants, startups and boutique products / services are now competing with the largest corporations in the world, and the playing field has never been more even – and competitive.
Enter our client, a leading player in the B2C sphere who was losing market share to a market newcomer, who offered a cheaper product range. On top of that, existing promotions were not gaining enough traction and their key differentiators were not clear.
Things needed to change, and that’s where we came in.
THE SOLUTION
It all came down to price; and finding a way to make costs more attractive to customers without compromising on quality. The solution included multiple components, including the estimation of price elasticity per product, optimization of promotion depth and the estimation of optimal price ratio to competitors.
Through a multi-faceted analysis, we were able to nail down the most successful price ranges on a per-product level – and then used the information to try and pinpoint the optimal depth per product.
We discovered that some products were sensitive to price while others were less so. Then, by using sales data across different channels, we were able to estimate the different optimal promotion rates per product, and combined visualization and regression techniques to estimate the effect.
Finally, we created a price index to ensure that the client was always offering the right price for individual products, when compared to the CPI competitor.
FINAL DISCOVERIES
1. Prices needed to above a certain threshold
2. There is an optimal rate of promotion that ensures the maximum amount of sales across channels
3. Pricing must be at a certain range per product compared to the competitor’s relevant products
THE SUCCESS
By employing the above techniques, we were able to deliver a detailed report of the findings under various considerations, as well as interactive visualizations built into a dashboard.
This led the way for better pricing strategy for Black Friday and other holiday seasons across all channels. The continuous tracking KPIs were developed off the back of the success of the new pricing strategy to be deployed in a live sales dashboard.
This meant that the client could always stay one step ahead in pricing when compared to their competitors, making sure that products were always priced at the correct point without leaving any sales or margin on the table.
The client reported 30% more sales during the campaigns where new pricing strategy was employed. While some of this is due to increase in natural number of customers, the client reported that this increase overall was only about 15% whereas their sales increased by double that amount, attributing the remaining increase to correct positioning.
How we used competitor monitoring and price
sensitivity analysis to increase sales and win
market share for a leading B2C client.
30%
Increase in sales
15%
directly attributed to the new positioning
THE SITUATION
The world of B2C is not what it used to be. New entrants, startups and boutique products / services are now competing with the largest corporations in the world, and the playing field has never been more even – and competitive.
Enter our client, a leading player in the B2C sphere who was losing market share to a market newcomer, who offered a cheaper product range. On top of that, existing promotions were not gaining enough traction and their key differentiators were not clear.
Things needed to change, and that’s where we came in.
THE SOLUTION
It all came down to price; and finding a way to make costs more attractive to customers without compromising on quality. The solution included multiple components, including the estimation of price elasticity per product, optimization of promotion depth and the estimation of optimal price ratio to competitors.
Through a multi-faceted analysis, we were able to nail down the most successful price ranges on a per-product level – and then used the information to try and pinpoint the optimal depth per product.
We discovered that some products were sensitive to price while others were less so. Then, by using sales data across different channels, we were able to estimate the different optimal promotion rates per product, and combined visualization and regression techniques to estimate the effect.
Finally, we created a price index to ensure that the client was always offering the right price for individual products, when compared to the CPI competitor.
FINAL DISCOVERIES
1. Prices needed to above a certain threshold
2. There is an optimal rate of promotion that ensures the maximum amount of sales across channels
3. Pricing must be at a certain range per product compared to the competitor’s relevant products
THE SUCCESS
By employing the above techniques, we were able to deliver a detailed report of the findings under various considerations, as well as interactive visualizations built into a dashboard.
This led the way for better pricing strategy for Black Friday and other holiday seasons across all channels. The continuous tracking KPIs were developed off the back of the success of the new pricing strategy to be deployed in a live sales dashboard.
This meant that the client could always stay one step ahead in pricing when compared to their competitors, making sure that products were always priced at the correct point without leaving any sales or margin on the table.
The client reported 30% more sales during the campaigns where new pricing strategy was employed. While some of this is due to increase in natural number of customers, the client reported that this increase overall was only about 15% whereas their sales increased by double that amount, attributing the remaining increase to correct positioning.
How we used competitor monitoring and price sensitivity analysis to increase sales and win market share for a leading B2C client.
30%
Increase in sales
15%
directly attributed to the new positioning
THE SITUATION
The world of B2C is not what it used to be. New entrants, startups and boutique products / services are now competing with the largest corporations in the world, and the playing field has never been more even – and competitive.
Enter our client, a leading player in the B2C sphere who was losing market share to a market newcomer, who offered a cheaper product range. On top of that, existing promotions were not gaining enough traction and their key differentiators were not clear.
Things needed to change, and that’s where we came in.
THE SOLUTION
It all came down to price; and finding a way to make costs more attractive to customers without compromising on quality. The solution included multiple components, including the estimation of price elasticity per product, optimization of promotion depth and the estimation of optimal price ratio to competitors.
Through a multi-faceted analysis, we were able to nail down the most successful price ranges on a per-product level – and then used the information to try and pinpoint the optimal depth per product.
We discovered that some products were sensitive to price while others were less so. Then, by using sales data across different channels, we were able to estimate the different optimal promotion rates per product, and combined visualization and regression techniques to estimate the effect.
Finally, we created a price index to ensure that the client was always offering the right price for individual products, when compared to the CPI competitor.
FINAL DISCOVERIES
1. Prices needed to above a certain threshold
2. There is an optimal rate of promotion that ensures the maximum amount of sales across channels
3. Pricing must be at a certain range per product compared to the competitor’s relevant products
THE SUCCESS
By employing the above techniques, we were able to deliver a detailed report of the findings under various considerations, as well as interactive visualizations built into a dashboard.
This led the way for better pricing strategy for Black Friday and other holiday seasons across all channels. The continuous tracking KPIs were developed off the back of the success of the new pricing strategy to be deployed in a live sales dashboard.
This meant that the client could always stay one step ahead in pricing when compared to their competitors, making sure that products were always priced at the correct point without leaving any sales or margin on the table.
The client reported 30% more sales during the campaigns where new pricing strategy was employed. While some of this is due to increase in natural number of customers, the client reported that this increase overall was only about 15% whereas their sales increased by double that amount, attributing the remaining increase to correct positioning.