Price Optimization: Your most important lever to boost profitability
A small increase in pricing has a significant impact to the top line than trying to increase sales. On the other hand, Price is a prominent factor in influencing buying decisions. With increasing market competition, the scope to experiment with the pricing strategies in marketing is limited for businesses.
Setting the right price for a good or service is an old problem. Traditional methods are still in play but not good enough to deal with ever-changing customer expectations. Services are turned into commodities with hardly any USP amongst the providers. Pricing strategy has to be targeted. Whether to increase profitability or to enter a new market or segment, one must optimize accordingly.
Typical issues in pricing
- Poor governance and policy execution
- Lack of availability of price-related data
- Ignorance of segment willingness to pay
- Incentives targeted towards volume
- Regulatory pressure on price transparency and expectation on business returns
Some of the issues highlighted above can be solved by using Machine Learning (ML). Whether to implement a policy or analyzing price propensity for a customer segment, ML-based pricing has lot to offer.
Big names have been using machine learning in pricing for years. Amongst the examples is Amazon, which was one of the earliest adopters of the technology, has seen stellar growth in the market value: from 30 billion in 2008 to almost 1 trillion in 2019.
So, what is holding a financial organization from boosting profitability through pricing using ML today?
Join Oracle, Predictive Layer and RIA as we uncover:
- Pricing maturity in the financial sector – current state of play
- A framework and systematic process for improving pricing
- The role of technology in enabling greater pricing and profitability
- Dependency with the availability of good quality data
Co- founder and CEO, Predictive Layer
Head of Sales, Europe, Revenue Management and Billing, Oracle Financial Services
Rahul has worked with several financial services clients like HSBC, Barclays, Euroclear, Nordea, Worldpay etc helping them resolve pricing and billing issues. Prior to Oracle he worked for Procter & Gamble in Germany managing their OSB (Order, Shipping, Billing) processes. Rahul also has an MBA from London Business School and a Bachelors in Software Engineering from the University of New South Wales in Sydney, Australia.
Senior Director, RIA Advisory
Jointly hosted with Ria