Price Analytics

OP Price Analytics (PA) enables enterprises to reach the “Segmented” stage of the pricing maturity model. Many enterprises have not yet implemented efficient price setting processes and pricing authority is often diluted between sales, marketing, finance and operations without a clear definition of responsibilities. The first step is to create a pricing function in the organization, assign dedicated resources to this function and clarify roles. The second step is to define clear price setting/monitoring processes and implement a toolset enabling to support these processes. OP Pricing Analytics is the solution: it brings together in a pricing data mart all relevant decision support data (customer segmentation attributes, billed transactions, costs, quotes history and market data). It provides insight into this data through one-click predefined analyses and a state-of-the-art business intelligence environment enabling to build flexible ad-hoc analysis. Three performance domains are covered:

  • Price setting and monitoring
  • Customer performance
  • Team performance

Price setting and monitoring

PA permits to build customer micro-segments based on attributes influencing willingness to pay or cost of service such as: industry and sub-industry, geographical area, revenue tier, service level requirements. Then PA enables (at a product or option/service level) to:

  • Set price plans and discount policies for each micro-segment
  • Simulate impact of these price policies before their effective implementation
  • Monitor price policy performance and tune according to changing market conditions

PA provides the following decision support analysis and more:

  • Price/margin bands
  • Offers exposures and deal conversion rates (win/loss)
  • Competitive benchmark

Customer performance

PA enables to identify profitable micro-segments where sales efforts should be focused and to monitor customer price performance with identification of loss makers and customers potentially at risk. Key tools include:

  • Profitability waterfall
  • Fair price analysis
  • Competitive benchmark
  • Compliance analysis

Sales staff performance

PA enables to monitor pricing performance by sales person and sales team and build efficient incentive schemes. Key tools include:

  • Price index
  • Margin score
  • Conversion analysis