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Boost profits with smart price segmentation
Price segmentation is one of the most powerful strategies for pricing for your products or services. Companies who employ price segmentation increase operating profits by between 10% and 60%
Grow faster
Create a results-driven pricing strategy
Price segmentation help you boost profitability and lifetime value from certain customers while still closing customers with lower spending power, boosting your overall revenue.
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Increased profits
- Introducing price segmentation has been shown to increase operating profits by between 10% and 60%.
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Increased market share
- Offering attractive prices to a specific demographic is an excellent way to enter an untapped market.
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Innovative marketing strategies
- Craft engaging, creative promotions to captivate and interact with your target audience, driving increased engagement and interest.
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Enhance customer loyalty
- Implement pricing strategies that align with how each of your different customer segments perceive value for money.
Price smarter
Stronger, more reliable relationships
Putting structure and logic in place that mimics your best salespeople's intuitive understanding of customer pricing dynamics.
- Personalised.
- Design pricing to reflect various factors such as volume discounts, loyalty rewards, seasonal pricing adjustments, and more.
- Transparent.
- Foster trust and loyalty with transparency and consistency in pricing, and this method ensures that they are always charged a fair and predetermined price.
- Consistent.
- Customers appreciate consistency in pricing. Offer the same pricing accross all the different channels a customer whishes to engage in.
Efficient approach to pricing
Operationalise your pricing segmentation strategy for sales agents, order takers or price approvers in their day-to-day business process.
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Streamlined
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By configuring price agreements in advance, your business can reduce the administrative burden associated with manual pricing tasks.
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Error free
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Reduce potential costly errors associated with manual pricing adjustments.
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Adaptive
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Dynamic and responsive pricing, as the agreements can be structured to automatically adjust prices based on predefined criteria.
Streamline
Set it and forget it.
Implementing a sophisticated pricing strategy can often be a complex and daunting task for businesses. The key to simplifying this process lies in the effective configuration of price agreements upfront.
- Filtering.
- In some cases a customer may not need or want all products and Price Agreements provide a means to define the products customers have access to.
- Grouped pricing.
- Configure each customer segment that share the same pricing providing an efficient way to manage pricing for many customers.
- Bespoke pricing.
- Strategic agreements with a high value customer can be implemented with a dedicated price agreement solely for one customer.
- Temporary arrangements.
- Set an expiry date to a price agreement to as a simple "set it and forget it" approach to manage temporary price arrangements.
- Dynamic adjustments.
- Configure certain adjustments on the fly according to volume discounts, loyalty rewards, seasonal pricing adjustments and more.
- Custom built models.
- If traditional pricing strategies don't meet your business requirements, we can build a completely custom pricing engine.
By the numbers
Why would a company bother to differentiate prices based on customer willingness to pay? The answer is it stands to gain a lot of value, according to an article by cfo.com.
In most cases these additional sources of value (revenue) come with little or no additional incremental costs, so there’s a direct — and large — link from that revenue to operating profit. Moving to differentiated pricing, based on pricing segments, has been shown to generate anywhere from 1% to 6% of revenue lift (with virtually no incremental costs). That’s typically a 10% to 60% increase in operating profit.
- Increase in revenue
- 1% to 6%
- Increase in operating profit.
- Up to 60%
- Incremental costs
- Zero
From the blog
Learn how to grow your business with smart pricing engines.
Andre van Eeden
Andre van Eeden
Andre van Eeden