Win-Loss Analysis is the process of critically understanding why some deals are won while others are lost; it is an in-depth review of what your company does well in attempting to gain valuable clients, but also why you may be losing out on important proposals.
Mix Management Pricing Strategies
Mix management is the process to drive customers’ decisions to encourage them to stay longer, purchase higher transaction sizes and buy more profitable offers.
1. Targeted Pricing: Identify and adjust price gaps between tiers/groups of offers
2. Innovation: New offerings based on whitespace in the portfolio
3. Pack Price: Capture increased market share by reshaping the product or services packages offered
4. Capacity Management: Managing what offers are presented to each customer segment
Often companies solely focus on price increases as the only way to drive revenue. This is short-sighted as it fails to leverage all your revenue management tools. Mix Management allows you to shift product/service volume to drive incremental revenue and profit sustainably.
Change in volume weight (%) of Item with Portfolio
Net Price of Item relative to Portfolio
Negative mix effect
(Ex. Very high net price SKU loses Brand Volume)
Favorable mix effect
(Ex. Ultra Premium Brand gains share of Mix; Profitable Channel gains share of Volume)
Negative mix effect
(Ex. Value (low price) Brands losing share of Volume)
(Ex. Low net price customer gains share of Volume)
Mix drivers shown above can be visualized as follows (customized to your business’s KPIs)
Revenue Management Labs helps your company balance portfolio mix by optimizing price, innovations, pack price, and capacity management to unlock revenue uplift opportunities. Our revenue management capabilities allow us to understand the influence of mix drivers across your company portfolio, ensuring that the offerings are positioned to maximize profits and retain/acquire customers.
Without the right pricing strategy, your company is bound to run into problems such as being unable to pass price adjustments, customers not understanding your prices, higher rates of defection, etc. Surprisingly these pricing issues can be easily avoided if you know what to look out for.
As market environments continue to evolve, discount strategies are a proven way to achieve long-term goals for top-line growth. However, the financial trade-offs associated with discounting have to be clearly defined, along with routine post-analysis to understand the impact of the discounting actions.