Published in: Pricing

Maximize the relevance of our solution to your pricing strategy

At PricingHUB, we base our measurement of value creation on three fundamental pillars: relevance, productivity and financial KPIs. This article focuses on just one of these three pillars: Relevance.

Our definition of relevance is as follows: it’s the ability of our solution to meet your operational and strategic constraints, without you needing to invest time in it.

We believe in the powerful set of customizable features that ensure greater control over compliance with your operational and strategic constraints, without sacrificing productivity and while optimizing your financial KPIs.

Respecting operational and strategic constraints

The 3 major operational constraints

Ensuring compliance with our customers’ operational constraints is essential to maintaining a high level of satisfaction with our pricing AI. From experience, we have been able to identify 3 major operational constraints:

• Day over Day price changes: to ensure the relevance of our solution, it is important to be able to adapt price variations according to our customers’ needs and constraints.
• Price differentiation by distribution channel: to ensure relevance, we enable our customers to adapt their prices to each of their distribution channels, guaranteeing a pricing strategy adapted to each market.
• Timing of outgoing flows : we send price recommendations at the times requested by our customers, to minimize the time lag between sending recommendations and implementing them.

The 5 major strategic constraints

The relevance of our pricing solution also extends to the management of strategic constraints, which enable you to define the framework of your market positioning. The five major strategic constraints we have identified are as follows:

• Dynamic price corridors: we offer the possibility of establishing dynamic price corridors in order to remain competitive and ensure your market positioning, while investing little time in managing these rules.
• Price consistency across distribution channels: to ensure the relevance of your pricing strategy, our pricing AI offers the possibility of guaranteeing price consistency across all your distribution channels to reinforce your brand image and avoid possible confusion for your consumers.
• Customized price rounding: our pricing tool enables you to create and manage specific rounding rules to suit your needs as closely as possible, enabling you to achieve your objectives while protecting your margins.
• Weighted unit margin: in addition to your main objective (profit, revenue or volume), our pricing solution enables you to define a weighted unit margin objective over a pre-defined period.
• Annual KPI thresholds: you can define thresholds for your KPIs to monitor and guarantee achievement of your long-term strategic objectives.

A concrete example of the importance of relevance

I’m a major retailer and I promised to be the cheapest on the 34-pack of Pampers diapers for 15 days throughout France. I communicated this information to my consumers via a push notification on the mobile application.
Emma, a loyal customer, received the push notification on the app and was very interested in the offer. To make sure that the promise is kept, she checks a competitor’s price for the same item. Emma loses confidence and immediately uninstalls the application. I’ve just lost a loyal customer.

What lessons can I learn from this?

If I had used PricingHUB’s pricing AI, I could have avoided this situation. All I had to do was create a simple rule, set up a calculation and implement high-frequency pricing recommendations (2-3 times a day). I could have kept my promise, preserved the loyalty of my customers and strengthened my position in the competitive marketplace.

Beyond the algorithmic approach proposed by our pricing solution, our platform aims to adapt to your pricing strategy and guarantee uncompromising relevance. By maximizing relevance in your pricing strategy with PricingHUB, you can not only meet your customers’ expectations, but also significantly boost your company’s growth. This makes relevance an essential catalyst for long-term business success.