Double digit sales growth is rare in mature markets, and therefore cost cutting has been a strong focus for many corporates to deliver increased profitability. However, pricing is also a highly effective lever to generate profit growth; an opportunity that many businesses have failed to fully exploit.  This failure is a missed opportunity.  The use of technology – and through technology access to information – is giving customers ever greater clarity on specific price points, and empowers them to make informed comparisons and choices based on price. However, it is also giving corporates the ability to take a more agile and data-driven approach to pricing management. The ‘big data’ phenomenon has led many companies to invest in their pricing capability. Those that have outperform the market in terms of profit growth.

Credo has developed six key capability areas to help our clients understand and address this pricing opportunity:

  • Pricing Strategy: From a pricing perspective, how do we aspire to be perceived in the market?
  • Price Setting: How do we differentiate our pricing in different segments and set appropriate target prices?
  • Price Execution: How do we push price guidance to sales teams and ensure its value is realised?
  • Price Realisation: How do we achieving target pricing and maximising the power of discounting?
  • Price Reporting: How do we report on our price performance and visualise the data?
  • Pricing Organisation: How do we ensure organisational accountability and focus across the pricing process?

We work with organisations to develop pricing strategies to optimise revenue from both consumer and B2B sales.  For example:

  • We have worked with major insurance providers to determine the value of different aspects of insurance policies and develop targeted propositions which reflect the different value placed on different aspects of service within different customer groups
  • We have quantified differential willingness to pay across customer segments on the UK’s largest toll road, informing the development of an overall pricing approach, the business case for new product development and a multiplatform marketing strategy for both personal and business users
  • We have helped one of the world’s leading hire car companies to assess its approach to pricing for all of its business accounts, and develop a radical and highly successful strategy to improve account profitability

Most of our work on pricing strategies begins with a clear emphasis on customer segmentation.  Credo has developed a strategic approach to identify different customer segments, understand the specific drivers of value in each and develop differentiated pricing strategies to maximise that value.  When combined with a clear understanding of the economics – especially the marginal cost and capacity – of providing goods and services, we are then able to combine these pricing strategies with broader quota management, promotional and distribution approaches to develop an holistic approach to revenue optimisation.

Our approach to customer segmentation and preference analytics is based on rigorous quantitative analysis of customer requirements and willingness to pay.

  • We have extensive in-house experience in using qualitative research, simple quantitative panel surveys and complex conjoint techniques to differentiate customer segments and derive price elasticities.
  • We have also developed a strategic partnership with TrueChoice, the market leader in using primary research to identify customer preferences. Through this partnership, we provide an industry-leading, analytical approach to developing insight-led approaches to the strategic challenges of revenue optimisation

Our Team

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Matt Lovering

Partner
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David Reid

Manager
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Chris Hinde

Manager