A data and analytics-enabled framework that ensures more dynamic pricing and promotion strategies for growth ambitions.
When it comes to driving growth through pricing and promotion mechanics, we help clients with an analytics-embedded solution. Our approach focuses on several key steps when implementing the pricing and promotion solution, such as insights from past actions derived from the collection of data from multiple sources into a single source of truth, using advanced analytics to derive strategic insights.
Our teams are also prepared to optimise and set future actions by using past insights, combined with competitor analysis and business strategy to improve and set future prices, promotions, and markdowns across different channels, markets and seasons. The impact of such actions is estimated through simulations and evaluated for top-line and bottom-line growth.
Implementing, tracking, testing, and learning actions provide and help clients apply the pricing, promotion, and markdown recommendations in a quick test-and-learn environment, while constantly feeding the insights into future recommendations.
The guiding principle behind our MPF focuses on four key pillars:
A clear and non-overlapping price ranges in tears from "Good", "Better" and "Best" prices. A "Good" price tier starts with a competitor's comparable entry price point. The "Best" price tear ends with an aspirational exit price point.
Each price tier should have 2-3 price ranges and each price point should have “critical mass” options (I.e. avoid price points with very few options). A similar range of styles at entry price points benchmarks key competitors.
Actively looking at key profitability at different price points offers higher options at profitable key price points.
New price points should be tested within each price tier to increase the share of the wallet.
Metyis' approach enabled revenue impact of up to 4% with a European fashion retailer.
Our client asked us to help with their rebranding strategy to reposition themselves as an accessible luxury, with pricing being one of the key pillars of this repositioning strategy.
Using the guiding principles behind the MPF, we helped optimize the range planning and pricing architecture across their key product categories in key markets, supported by insights using best practice pricing algorithms and competitor insights. We also helped redefine their price setting process to be analytics empowered with clear guidelines in terms of roles and responsibilities, decision making and evaluation processes. This approach enabled revenue impact of up to 4%.
Our pricing and promotion team includes experts in pricing, data and analytics, technology, strategy, execution and implementation. We provide an end-to-end integrated data-driven solution combined with deep expertise in implementation to enable our clients to achieve sustainable results. We also provide training and conduct workshops and coaching to help build the client’s teams to improve and expand their pricing and promotion capabilities.