Maximize Revenue Uplift through a dynamic pricing strategy​

Applications of Advanced Analytics in Finance
Dynamic pricing is a strategy that takes into account changes in sales value driven by real-time supply and demand. This strategy, highly implemented in airlines and in the hotel industry, is gaining momentum in other more traditional industries spurred by greater access to real-time information. It is aimed at using in-depth customer and market knowledge to maximize sales by identifying, for each customer segment:

Advanced Analytics and Big Data tools allow companies to analyze the purchasing behavior, online interactions, preferences and interests of customers to obtain a highly detailed profile. The evolution of the supply and demand of specific products or services in order to tailor prices to customer needs and purchasing power at a given time.

These techniques can be applied across practically all industries and only require the implementation of an online Marketplace or proprietary app.

everis has worked with a fast-moving consumer goods company interested in improving sales and return on marketing investments.

Some business questions to be answered

Solution

everis worked with the commercial, finance, supply chain, marketing and IT departments of this company to design a model that measures daily price elasticity at a great level of detail. The model provides controllers with the ability to suggest price variations at Point of Sale level and measure impact of the actions taken.

Forecasting and simulation model

Benefits achieved

Business and financial benefits

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