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.
Whether we like it or not, promotions and discounts are a marketplace reality. In fact, they are one of the most common ways for companies to boost revenue. Unfortunately, 1/3 of promotions and discounts fail to generate a return and negatively impact the bottom line.
Poorly planned volume investments can lead to:
- Customers who wait for discounts to avoid buying at the regular price
- Channel programs that do not support organizational goals
- Channel partners who are unmotivated to sell
- Loss of sales due to deterioration of brand value
- Sales teams who are over-reliant on pricing incentives
- Inability to forecast demand versus promotions and discounts
Revenue Management Labs helps companies maximize volume by leveraging analytics to identify the right set of promotions and discounts to invest in, when and where to invest, on what offers / customers, and at what levels. We also help companies develop a systematic process and framework to manage discounts, promotions, and bids to improve their share of revenue in the value chain.
Our engagements have helped clients:
- Design promotions that drive sales volume and improve customer value perception
- Develop optimal investment structures to eliminate customer and channel conflict
- Control and optimize spending on discounts and promotions
- Streamline the sales process with clear discounting guidelines
- Invest in activities that drive volume while maintaining brand integrity
Our Discount Optimization Process
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.