PRICING ANALYTICS

We excel in using Client data to design and implement outcome-focused AI solutions that deliver increased Profitability and Revenue

 

Advanced Analytics for Pricing & Products

 

Price optimisation is a key commercial driver in the face of increased competition and market transparency, particularly in the face of online trade. Trusted Data develop and deploy algorithms and price optimisation analytical techniques, to historical data and new market information, in order to drive either dymanic, static or enhanced yield engines.

Our pricing analytics and modelling results in terms of yield optimisation or ROI can be defined through the following deliverables: Increasing Sales Volume, Improving Customer Retention and Incremental Customer Acquisition; all to drive Profit Uplifts, Revenue Uplifts, Increased Margin per Sale, Opportunity Maximisation and Customer Value.

Pricing & Profitability

Driving Profitability through Pricing analytics

Predictive and Prescriptive analytics approaches are now beginning to be employed by adept organisations seeking to better understand how pricing will impact customer acquisition, retention, revenue and margin.

Trusted Data’s approach to pricing and profitability analytics centers on modelling a number of key decision levers from historic customer, sales and market data, including:

1. Point & Threshold based optimisation on pricing and discounting levels

2. When and when not to offer discounting, including by customer segment, time and location

3. Competitor price mapping

4. Modelling ‘tipping points’ in the price and demand curve to drive margin growth without harming market share

 

Sales Volume

Volume Growth through AI Pricing Analytics

Too often, organisations place an emphasis on driving sales volume growth through heavy / frequent discounting without understanding the implications from a profitability, ROI and branding perspective.

By modelling demand and supply, incorporating internal and external effects, such as promotions, events and competitor activity, Trusted Data’s approach to pricing design helps their Clients to quickly identify ideal price points to drive profitable sales growth at the product, category or channel level.

 

Customer Value

Pricing Analytics to create Customer Value

Customer value is a relative phenomenon, which can vary by product/brand, customer, trade channel and time. Discounting and Price hikes, influence different customers and consumers in different ways.

Our approach to Pricing Analytics incorporates a range of data modelling techniques, to help clients dynamically infer, which pricing tactics are most adept to employ at any time.

Trusted Data achieve this by modelling customer insights that shape customer segmentation and understanding, enabling our clients to effectively predict an optimal / ideal price and how customers will respond to different pricing options, especially within a competitive market context.

 

Optimisation

Pricing Optimisation & Strategic Alignment

Quite often, Clients find themselves with a ‘cross functional disconnect’ in pricing design / execution. Sales team that are focused on volume drivers, may look at pricing differently to their counterparts in Revenue Management that are seeking ‘value’ creation and Marketing who may be focused on Brand Integrity.

Trusted Data’s development of pricing solutions are considerate of the needs for a cross functional audience. Our pricing tools have sought to improve awareness of pricing effects at the most granular level, observing profitable ways to grow market share and improve customer loyalty.

Our pricing solutions are almost exclusively designed to postively impact critical commercial performance metrics, to provide our Clients with measurable insights into pricing strategies and tactics employed through AI and advanced analytics.

Quite often, Clients find themselves with a ‘cross functional disconnect’ in pricing design / execution. Sales team that are focused on volume drivers, may look at pricing differently to their counterparts in Revenue Management that are seeking ‘value’ creation and Marketing who may be focused on Brand Integrity.

Trusted Data’s development of pricing solutions are considerate of the needs for a cross functional audience. Our pricing tools have sought to improve awareness of pricing effects at the most granular level, observing profitable ways to grow market share and improve customer loyalty.

Our pricing solutions are almost exclusively designed to postively impact critical commercial performance metrics, to provide our Clients with measurable insights into pricing strategies and tactics employed through AI and advanced analytics.

Advanced Pricing Algorithms to Make You Win

 

We go beyond price analysis to complete the design and engineering of bespoke, data-fit pricing algorithms to help you achieve & optimise the right pricing analytics goals. We have extensive experience in developing statistical, machine learning, deep learning & simulaton based pricing models.

Pricing Yield Engine

Price optimisation through AI

Yield engine design is a very complex domain within pricing analytics. Trusted Data enable clients to achieve dynamic pricing capability by looking at more than just price elasticity.

We observe and model granular patterns in customer requirements, customer transactions, product / service availability, demand trends, customer churn and pricing data to determine optimal price points or price thresholds, which can adapt against parameters such as channel, location, time or customer segment, to deliver rapid commercial success for you.

We also structure our solution delivery model to incorporate relevant performance assessment design and solution impact tracking, enabling our clients to benefit from an objective assessment of performance at multiple levels, including impact tracking across revenue, profit, new customer acquisition, customer churn and customer renewals.

Dynamic Pricing Models

Ai-driven dynamic pricing

In some industries, such as e-commerce, travel and hospitality, the ability to pivot and adjust to changing market conditions can be the differenve between winning and losing.

Trusted Data support clients in designing dynamic pricing models that can be embedded into existing architecture to drive a more respnosive approach to pricing, considering for demand, supply, customer segment, trends and location-based preferences. Dynamic pricing through Ai offers our clients the ability to move towards auction-type modelling that can maximise margin per transaction, through to strategic discounting that improves the ability to drive acquisition and profitable revenue growth at the right time by product, channel and location.

Static Pricing Models

Static price optimisation

When clients are not willing to move towards dynamic – based pricing, Trusted Data can design alternative pricing solutions.

Static pricing is usually more considerate of pricing consistency, and / or where price discrimination becomes a concern for our clients.

Nevertheless, with static pricing, Trusted Data are able to recommend and design our Ai pricing solutions in such a way as to allow our clients to navigate pricing in a competitive landscape, whilst being extra mindful of regulatory, reputational and business requirements. Our static pricing solutions are still highly considerate of demand, trends, customer profile, customer value and market dynamics, to ensure our clients mobilise pricing tactics that are nimble and responsive to changes over time. Using open-source coding languages, our solutions can be easily integrated into / aligned with existing client CRM and Pricing applications.

 

 

 

Global Pricing Design

Building Global Pricing Solutions

Quite often, Trusted Data clients are not operating in just a single market and therefore, in designing relevant pricing solutions, we need to develop broader pricing methodologies and solutions that consider for intra-market variances in processes, systems and data.

Common pricing solutions almost always fall down in the face of such challenges and variations in data.

Trusted Data excel in mapping data structures to develop pricing methodologies that can be applied simultaneously in multiple markets, thus improving consistency and efficiency in our clients’ pricing processes.

Global pricing design can also be undertaken at a local level to begin with, for performance validation purposes and to also mitigate broader investment risk for clients seeking how to mobilise a cross-border pricing solution.

Promotional Pricing

Data Intelligence in Promotional Price Setting

Promotional pricing analytics requires a dynamic modelling approach, beyond observing elasticities, especially in non-uniform product settings. In addition, the commercial outcome varies across product channels and organisations, though promotional pricing is largely focused on enabling volume uplift, category share, and / or margin acquisition.

Trusted Data’s analytics approach focuses on enabling the right decision making in price setting, pricing execution and promotional optimisation.

Our data science team help Clients to create added visibility on costing mechanisms, revealing the true profitability by product, customer and trade channel. Within price setting we observe how competitive behaviour, pricing, supply and demand all affect Client commercial metrics; we then offer Clients capability for dynamic pricing that is responsive to market context. In a promotional context, this helps Client to set correct price levels, helping them to avoid sub-optimal discounting that negatively impacts brand value and profitability.

Increased MARGIN pricing

Margin Growth through AI-pricing

Knowing what products to price more aggressivley requires a very deep understanding of internal and external demand attributes, together with competitor intelligence.

Identifying product / product groups that have a low elasticity or have historially shown low responsiveness to price increases requires careful data preparation, data transformation and discrete modelling, which enteprise systems fall foul of.

Trusted Data employ the most cutting edge analytics techniques to dynamically identify margin driver product groups that will grow your top line. Product trends and demand can vary over time; our customers remain responsive to these changes to intelligently employ product price increases at the right time or with the right customers.

 

 

Price to drive sales volume

Volume Centric Pricing Analytics

As commercial acitvities often occur in parallel, it can be difficult to decompose causal effects on sales volume growth. Promotions, seasonal demand, trends and events all play their part in influencing volume growth. Understanding where pricing fits into this puzzle, requires a robust analytics effort.

Trusted Data develop the right hypotheses and pricing methodology most relevant for your organisation. As business needs / market dynamics can change over time, our pricing solutions can adapt to observed and unforeseen events, helping clients secure volume growth and market share. Utilising Machine Learning we can rapidly identify, across all product groups, how and what price triggers affect volume growth, eliminating ineffective pricing tactics.

Price Elasticity Analytics

Modelling Pricing Elasticity

In a classical marketing context, pricing elasticity of demand is simply the responsiveness / sensitivity of consumers to a change in product pricing.

Trusted Data support clients in the design and development of pricing elasticity solutions, which can sit either as standalone tools (i.e. for visualisation / BI purposes) or as embedded models to support broader price optimisation efforts.

Our modelling approach, which involves robust computation of baseline demand and validation of demand changes, enables clients to accurately segment products, better informing them whether they serve as price competitive, margin-optimised or margin driver products in a given category or market.

Sku & Category Pricing

Applying Ai to Optimise SKU Pricing

While there are multiple pricing solutions on the market, automatic dynamic pricing is in its’ infancy.

Different products and products groups can serve varying purposes for Consumer Goods and Retail companies and adapting the right pricing strategy at any given time, requires a more sophisticated approach.

Trusted Data develop pricing optimisation solutions within consumer goods and retail organisations, based upon client goals, competitor landscape and the trading model….True dynamic SKU pricing for an FMCG player supplying a supermarket chain is not feasible when trading terms are agreed well in advance.

Nevertheless by modelling demand over time, historic purchasing behaviours inside and outside of promotional periods, coupled with category pricing levels and individual product attributes, Trusted Data deliver intelligent solutions that can better inform clients on sales projections when changes occur in theirs and / or competitors’ prices during the trading cycle.

Pricing to grow Market-Share

How to Acquire Market Share through Pricing

Staying ahead of the curve in a business environment with heightened pricing transparency is critical to maintaining or growing market share.

Trusted Data clients utilise our Pricing solutions to identify how pricing customisation should be modelled. We enable clients to leverage competitior intelligence, specifically in relation to price competitive and margin optimised product groups, where pricing responsiveness is higher) to grow market share, maintaining competitiveness on the products where discounting / promotions really matter.

No two products or customers necessarily behave the same and so being able to dynamically model this and adapt your pricing on a recurring / dynamic basis is essential to developing a health market share.

Tariff/Bundle Pricing

Optimise your tariff / bundling pricing strategy

Bundled pricing strategies require entensive modelling to understand a customer’s propensity to purchase an item and a group of items, whilst considering for various pricing combinations.

Trusted Data excel in supporting organisations with broad product portfolios / customer tiers to deliver pricing analytics.

Our approach to tariff and bundled pricing analytics allows our clients to understand what drives their customers’ purchase behaviours, how different their customers behave, how product combinations can help drive customer acqusition / retention and how various pricing levels can affect different customer types. Our approach is multi-dimensional and includes looking at pricing design from various perspectives, including demand, price sensitivity, feature value and ARPU.

Our solution design is optimised against a specific outcome variable so that clients have full transparency in gauging impact from investment in tariff and bundled pricing analytics.

Value Based Pricing

Measuring Customers’ Willingness to Pay through Value-based Pricing

Customer value can be a difficult attribute to measure but is critical in a marketplace flooded with price-cognizant consumers. Knowing the willingness of customers (known and unknown) to pay higher prices for products is based on a clear perception of the value they (can) receive.

Trusted Data’s pricing optimisation solutions can be engineered to allow our clients to better understand how to measure actual customer value, relative value versus competitors, marketplace responsiveness to pricing changes, attributes offering the greatest pull to customers, custmer segments that value offers higher.

Using a suite of different analytical tools, including competitor network modelling, value-in-use analysis, time-based variance, cross price elasticities and discrete choice modeling, we enable our clients to design and justify their pricing offers accordingly.

Our Pricing Solution Delivery Model

Define the target Revenue / Profit performance outcome

Each clients’ pricing analytics approach needs to be considerate of very specific dimensions; data, processes, business context and the target improvement  outcome.

Likewise, Trusted Data’s approach to solution design begins with identifying and defining the right problem for the client and how to clearly define success parameters, which underpin the price solution modelling & deployment approach.

ACQUIRE THE right data & ASSIGN THE RIGHT solution methodology

Given the variety and scale of data processed through Enterprise systems nowadays, it is no surprise that Enterprise solutions fail so often to deliver exactly what the Client wants.

Once we have defined the right problem, we turn our focus quickly to selection of the right data and modelling methodology, which will deliver your commercial improvement outcome.

Model & Deploy the right proprietary solution to achieve your TARGET outcome

By utilising AI & Machine Learning, we offer Clients added analytical horsepower to comb through the myriad of data which they may or may not warehouse internally, to move beyond insights and on to actionable intelligence, developing intelligent pricing that supports customer acquisition, revenue growth and margin realisation.

Rather than ‘selling’ solutions, we focus on the ‘promise of success’, guaranteeing clients superior performance by engaging Trusted Data.

U
Knowledge Transfer, Solution adaptation & impact tracking with the client

We remain to close to clients to support effective knowledge transfer, solution impact tracking and iterative refinements to solutions beyond Pilots or version 1.0

Client needs may evolve and Trusted Data remain repsonsive to adapting pricing solution functionality in  line with such requirements.

How We Set Ourselves Apart

AI Driven Pricing Analytics

 

Trusted Data offer Revenue & Pricing leaders the most sophisticated analytics-driven apporaches to price design, setting and execution with a specific focus on driving growth in revenue, market share and profitability. By leveraging AI and ML modelling techniques, we enable clients to make data intelligent pricing decisions based on market context, customer and consumer trade channels and local demographics. Trusted Data clients are more nimble in responding to a changing market context through dynamic pricing analytics

  • Flexible pricing (gain share or result driven)
  • Right| Data, Methodology & Modelling
  • Open source tools
  • Achieving target for you
  • Speedy delivery
  • Guaranteed ROI

Some of our Product Pricing Solutions

 

Using a team of pricing and data science professionals, Trusted Data have the ability and track record in pricing optimisation and revenue realisation to deliver hard-hitting commercial impact for our clients.

Retail Promo Optimisation

Personalising Promo offers at POS for customers

FMCG Promotional Analytics

FMCG Promotional Intelligence solution

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