Achieve more profitable sales, without sacrificing revenue.
Knowing the right discount to offer a prospective customer, in order to secure the deal without sacrificing attainable revenue, is a classic challenge in both B2C and B2B environments, where price customization is possible.
Rather than aggressively discounting products or engaging in a price war, this retailer wanted to find a smart way to increase revenue and sales without sacrificing margins. At the same time, they wanted to be in a position to quickly react to market changes.
After understanding the business issues and boundaries, Skymakers performed extensive analysis to calculate optimal prices and uncover revenue leakage. Insights were also provided about the likelihood of successfully selling a product at any discount (or price) that the sales person would like to offer to a customer. The client’s segment-based policies and ‘one offer fits all’ approach were abandoned, and instead, customers were considered on an individual basis.
Using state-of-the-art machine learning techniques and algorithms, optimal discounting aligns offers with what each customer is willing to pay. The retailer can now maximize satisfaction from the purchasing experience, and also boost customer revenue, loyalty and stickiness. Personalized interactions with tailored content and behavior-based offers, targets, bonuses, and other appropriate incentives can be delivered at the right moment to each customer.
The retailer was able to uncover an average 14% revenue leakage across its entire product range and sustainably maximize its revenue, armed with valuable insights, actionable analytics and powerful price optimization features.