Many Commercial Consulting Firms will present you with a series of recommendations in a set slides and walk away.
However with Thinking Cap, this is just the start; these recommendations need to be embedded within the business…
Most companies do not want to outsource their pricing decisions to a third party software provider or consultancy firm.
Results will only happen when the organization is fully bought into these recommendations
When hearts and minds believe, then the change has to be implemented into the systems and processes of each individual business
This is where Thinking Cap comes into its own…
We have the experience of not just doing the analysis and producing the strategy but crucially…
We can deliver the implementation & project management that ensures the results will follow
We’ve been here before and can articulate with practical real-world examples – this makes the discussion tangible (we show you rather than tell you).
Commercial Analysis
an initial engagement to understand the size of the prize
Commercial Analysis and Pricing Recommendation (or Discovery) - We provide a complete review of the areas of focus required in pricing & competitive positioning and we forecast the potential upside from developing a pricing strategy / pricing capability in your business.
Commercial Analysis Phase – we feed our model with internal and external data sets with the highest possible degree of granularity. We consolidate all relevant data sources to be able to optimize your P&L
Transactional Data – product catalogue (SKU attributes), orders, basket components, shipping costs, revenue, marketing costs…. Broken down by many dimensions (POS, device, marketing, channel etc…)
Analytics Data – coming from various sources such as Google Analytics, identifying quick wins
Competitive Data – we recommend third party partners to consume your feeds and those of your closest competitors
Pricing Strategy
A PROJECT TO IMPLEMENT A VARIETY OF TESTS & BUILD UP A PRICING STRATEGY
We run detailed analysis on the opportunity, agree the organizational direction-of-travel on price & margin and work with your business units on defining an outcome-based pricing strategy & process at a product category/market/channel/customer level. We will also run price experiments to establish customer response.
Pricing Strategy Phase – we group products in different portfolios and build our algorithms to compute and segment elasticity
Build Product Portfolios – we cluster your product catalogue into different portfolios based on your business knowledge & targets
Launch the learning (testing) phase – we test different price points (Min, Max, Ave,…) for each product of each portfolio to be able to compute elasticity and have a starting point for optimization
Define the business targets – We can build scenarios and assign a Business Goal and its related constraints to each portfolio e.g. “I want to increase my revenue by 5% without decreasing my margin by more than 2%”.
Financial Results
A deeper ENGAGEMENT Driving LONG LASTING VALUE AND increased VALUATION
We can deliver a clearly defined Value Creation & Pricing implementation project to establish the strategy in full, set up the required process & organizational structure and assist with recruitment for the long term in order to fully implement.
This includes standing up a project team to run analysis and project work, aligning to your PMO.
Financial Results Phase – Pricing Optimization at Scale – at the end of the Strategy phase, we start to push regular price recommendations, optimizing towards the set business targets:
We provide recommendations for implementation – In using our price management strategy you can visualize and understand each price recommendation we make. You can then validate the pricing structure manually or automatically and export them in the format needed for your system.
Test & Learn Loop – Once statistical significance is reached, we measure the outcome of the price change, understand the dynamic environment, and compute an adjusted price recommendation for the next iteration.
Measure & Visualize Value Creation – We develop solutions to provide you with a clear, unbiased way to measure your performance vs the set target and the rest of your product catalogue.