CFO acknowledge harnessing the flood of data available from customer interactions enables you to price appropriately – and reap the rewards. Being able to overstate the importance of getting pricing right is proving rather difficult, as 1% price increase translates into an 8.7% increase in operating profits. Without uncovering and acting on the opportunities big data presents, many companies are leaving millions of dollars of profit on the table. The secret to increasing profit margins is to harness big data, to find the best price at product level.
For every product, you should be able to find the optimal price that a customer is willing to pay. The key to pricing is understanding fully the data now at your disposal. To be sufficiently granular, endeavour the following steps:
- Listen to data
- Build skills and confidence
- Actively manage performance