OPTIMIZE THE PRICE OF EVERY TRANSACTION
Fixed prices are based on average estimates of costs and customer willingness to pay. They are sub-optimal because they ignore the variation of these factors from transaction to transaction. Dynamic Pricing enables to calculate more precisely these factors at a transaction level thus increasing win rate and margin by transaction.
Predict willingness to pay by micro-segment
Do not leave value on the table and do not loose sales because you under-estimate or over-estimate willingness to pay (WTP). Use your data to estimate WTP by micro-segment and combine these insights with the results of market research and competitive intelligence.
Calculate the contribution to profit of each transaction
Calculate in real-time the incremental cost and the opportunity cost – not only the average standard cost. Some sales are worth taking even at a lower price and others do not generate a positive contribution to profit at a higher price.
Find the right price point in real-time
Find, for each transaction, the price point that maximizes the expected contribution to profit taking into account willingness to pay and the incremental and opportunity costs generated by the sale.
Fill excess capacity and leverage peak-load pricing
Identify when and where forecasted demand is below capacity and apply targeted incentives to generate additional sales – instead of overall price cut to avoid price dilution. Apply a premium to offset higher operational and opportunity costs when/where demand is greater than planned capacity
COMPONENTS
OP Dynamic Pricing includes a set of components that you can use separately or in combination. Each component requires to activate specific data sources.
Implementation and Integration
COMPONENTS
OP Dynamic Pricing includes a set of components that you can use separately or in combination. Each component requires to activate specific data sources.
Implementation and Integration
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