Revionics: Revolutionizing Pricing Science to Save Client Retention
Objective
To address a client’s critical shift away from elasticity-driven price optimization and develop an innovative pricing science feature that restores confidence, ensures contract renewal, and introduces a patentable product differentiator.
Challenge
- A specialty online retailer shifted to competitive price-matching, reducing Revionics’ influence to 0%.
- Time constraints demanded immediate results to secure client trust before contract expiration.
- Lack of competitor price sensitivity modeling limited Revionics’ strategic capabilities.
Approach
Client Analysis
Recalculated elasticity using competitor prices as inputs, identifying product sensitivity variations and strategic revenue contributors.
Competitive Elasticity Framework
Segmented products by competitive sensitivity and revenue contribution, creating actionable visualizations like the competitive value quadrant.
Optimized Pricing Rules
Developed a hybrid strategy: pricing high-sensitivity, high-revenue products competitively while applying elasticity-driven optimization elsewhere.
Innovation and Scaling
Integrated competitive effects into demand curves, enhancing elasticity models with the new 'competitive price elasticity' (PE-CP) calculation.
Results
Client Retention
- Secured renewal by regaining control over 59% of client revenue (up from 0%).
Revenue Growth
- Generated revenue from additional analytical services using competitive elasticity insights.
Key Learnings
- Actionable Insights Under Pressure: Quick analysis and visualizations turned critical challenges into opportunities.
- Client-Centric Science: Adapting models to client-specific needs builds trust and long-term partnerships.
- Innovation for Longevity: Combining new science with deliverable features ensures relevance in competitive markets.
"This approach not only saved the account but introduced a groundbreaking feature that continues to add value for our clients."
Media Highlights
Conclusion
This project demonstrates how data-driven insights, coupled with innovative modeling, can rescue critical accounts, foster long-term client relationships, and secure a competitive advantage through groundbreaking features.
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