Successfully implementing the results of predictive pricing models can achieve 15 – 20% improvements in their price and promotions’ investments while driving 1 – 3% increases in sales, and 2 – 5% margin enhancements. Too often this “low hanging fruit” opportunity goes unpicked, and sales opportunities and profits lost.
Ipsos MMA’s pricing optimisation solution provides leading companies with answers to critical pricing and promotions questions:
- How should pricing be taken to maximize gross profit with minimal impact to transactions or revenue?
- What are the short-term and long-term effects of pricing?
- How does an increasing/decreasing price gap to competition influence transactions and other KPIs?
- What check-level thresholds are present that need to be managed?
- What is the optimal number and makeup of price tiers?
- How price sensitive are items on the menu? Which are transactions drivers? Profit drivers?
- What trading behavior takes place between items?
- Are there specific prices for key items that prices should not go above or below?
Pricing decisions impact virtually every part of the organisation. This solution enables companies to better understand the impact of pricing decisions and make informed and forward-looking decisions across the organisation that result in higher sales and profitability.
The goal is to provide a rich mix of fact-based, predictive statistical insights and how our clients need to action them. Different scenarios run within our sim tool enable our clients to be prepared to plan and enact more effective and profitable pricing strategies with the ability to quickly course correct.
Consultative insights and value proposition - By working closely with cross-functional business teams Ipsos MMA develops predictive analytics and embeds them within easy-to-use and understand simulation software. This enables teams to war game and plan for various real-life and target scenarios in order to reach sales and profit objectives.
Powerful, real-time simulation software and scenario planning capabilities - The ability to conduct real-time “what if scenario” simulation activities across brand and competitive products allows our clients to understand the direct implication of pricing actions on sales and profits for their own brand as well as competitive items.
Predictive statistical models - Custom client-specific models incorporate a rich set of data enabling an expedited understanding of what will happen, when and where based upon different real and planned pricing scenarios.
Integrated price and promotion data platform - Data is collected at a granular level by Ipsos MMA’s professional data management personnel. The data is comprehensive and includes client sales and financial, price and promotion, competitive, assortment, mark-downs, seasonality, weather, etc.), insights and economic data sets. The data is collected, cleansed and harmonised in a powerful database that acts not only as a modelling and analytics platform for the analysis but also as a database for developing rich and insightful business reporting.
Experienced consultative support and value - Count on Partner-level insights from experienced consultants who work collaboratively with clients to assimilate the predictive insights into ongoing business processes that support value creation.