Leveraging Price Sensitivity Analysis for Sustainable Growth
The webinar introduces Symson's 5-Step Approach, a systematic framework for analyzing price sensitivity. From market research to regression models and calculating sensitivity scores, we cover each step in detail, showing how to implement these insights for strategic pricing adjustments and customer segmentation.
Topic 1: Case Story to Understand Price Sensitivity
Exploring the price sensitivity of products using 12 price drivers.
Explaining 4 examples of price drivers:
- Price driver a: Explained (e.g., price level of the product) - Price driver b: Explained (e.g., buyer frequency) - Price driver c: Explained (e.g., attributes of a product, such as material or colour) - Price driver d: Explained (e.g., [specific detail needed here])
What you can do with the results.
Topic 2: Price Elasticity vs. Price Sensitivity
When to use price sensitivity and when to use price elasticity.
Exploring the challenges businesses face with price elasticity, including:
- Historical data limitations - Lack of competitive data - The multifactorial nature of demand - Trust in pricing recommendations - The need for advanced optimization methods
Topic 3: Symson's 5-Step Approach
Market Research and Customer Surveys: Gaining insights into customer preferences and perceptions.
Building a Regression Model: Understanding the relationship between price, quantity sold, and price sensitivity drivers.
Calculating Price Sensitivity Scores: Assigning weights to coefficients and predicting customer response to price changes.
Topic 4: Implementation and Experimentation
Translating insights into margin optimization.
Segmenting customers for controlled experiments.
Monitoring and evaluating the effects of price changes.
Continuous improvement through frequent updates to the price sensitivity model.
Topic 5: The Best of Both Worlds: Combining Human Expertise and Machine Learning
The collaborative approach to price optimization.
The benefits of human-machine collaboration, including: - Increased sales adoption - Enhanced risk management - Higher accuracy in pricing strategies
