Collateral:Data Driven Pricing Strategy

Brief Overview

If businesses aren't careful about being sucked into the pricing hype, they may do serious damage to their own profit margins by unnecessarily matching a competitor's unrealistic price. But price transparency is here to stay, and organizations cannot afford to ignore competitors' rates when setting their own. So, how can companies survive this high-wire balancing act without resorting to blindly matching every price in the marketplace?

To turn transparency from a threat into an opportunity, organizations must take a data-driven approach to identify and consider the right competitors at any given time. This requires putting aside gut-feel and preconceptions — and taking a more disciplined, quantitative approach that measures customer responses to price changes, competitors' price changes, competitive attributes and recurring patterns like seasonal trends.