Profit Opportunities
Optimizing thousands/millions of transactions
A company typically proposes thousands of products with a variety of options and added services.
On the other hand, each customer has specific preferences driving its choice behavior. Finding the right offer, at the right price, for every customer represents a major business challenge.
In traditional sales channels (field sales and telesales), improving the transactions could be time consuming and there is a trade-off between better sales performance and higher selling costs.
For the online channel, the selling cost is much lower. Improvements in site navigation, product selection and configuration features enable to increase conversion rate. However, customer a typical search on a web site may still return an important number of possible choices and complexity is still a constraining factor.
Customer Centric Revenue Management
With limited effort, new sales management systems permit to collect and store for every customer transaction:
- Customer characteristics and stated preferences
- Offers presented/quoted to the customer and their sequence/order
- The outcome of the transaction: offer purchased (if any) or “loss” (no choice)
OP for Spot Transactions helps companies looking for higher performance to capitalize on this transaction data:
- Predict customer choice behavior (including price sensitivity) based on historical transaction data
- Push the right offers to every customer (including targeted promotions, up-sell and cross-sell tactics)
- Maximize conversion rate and yield per transaction
- Reduce transaction time and selling costs
Impact is up to 5% of additional net margin.