One of the main reasons brands and companies fail is because they priced their products poorly. Do you know if your sales prices are truly the prices that maximize your revenue?
The effects of suboptimal pricing can impact every facet of your organization: stagnant revenues, missing financial goals, decreased resources and even corporate morale.
A lack of clear and optimal pricing strategy can cost you significantly. Clearly, you cannot afford to get pricing wrong.
How much of your company's marketing resources are wasted advertising to the wrong people and saying the wrong messages? Meanwhile, the right people never see or hear you. The real damage is deeper: it's the right customers hearing the right messages - but from your competitors. Wasted resources and foregone revenue are one thing, customers lost for good because your competition targeted better is immeasurable. Your business will not survive long if your targeting is not optimized.
Brands launch product bundles often not knowing which feature has the real value and which component is dead weight. Including features that are costly to produce and maintain but provide little incremental value can cause real damage. Product features or line extensions that are part of an offering - but do not add more value are called 'dead weight.' The real damage dead weight creates is intangible but severe: lack of clarity in your offering and distracting features. How many customers don't give you a chance due to confusion with your offering?
Magic happens when you scientifically understand the VALUE consumers attach to your offering. When you operate at the optimal price point - the price customers are willing to pay for your product, you will see increased revenue that translates to more resources available for growth: new products, new markets, new hires, new office space and healthier and better morale. Are you ready to lead your organization into that optimal future?
"50% of advertising is wasted" was said in the early 20th century, yet it seems to be the excuse today as well. Hopefully you think that even 1% of wasted advertising is too much. Optimal marketing starts with a thorough understanding of who wants your products and services the most and why. As soon as you hone in on the most valuable target customer with the most appealing message, you will see an unprecedented success: increased marketing ROI and a significant boost to your top-line. Will you be the marketing manager that reveals the optimal customer to your organization?
When a new brand manager replaces an old, unsuccessful manager, they start with creating clarity and a logical structure around a product. Creating clarity starts with understanding the incremental VALUE customers associate with each feature in the offering. Confident managers don't shy away from cutting features - and thereby maximizing total value with minimal components. These brand managers free up tremendous resources on one hand and increase top-line sales as customers are drawn to a clear and logical offering. Will you be that manager?
We are the leading experts in strategic pricing and optimal product bundle configuration. We combine science with strategic market objectives to ensure that our clients will be well positioned for success. We apply advanced statistical methodologies to in-depth market knowledge as we work hand-in-hand with every client. As a result of our expertise, scientific approach and satisfied clients, an increasing number of brands have trusted us with their pricing and product strategy.
When a provider of trading software reached out to us to help make sense of pricing their offering, the market simulator (see video to the left) predicted approx. 100% potential revenue growth by restructuring their pricing schema. This was in the summer of 2020.
One year later, the company reported "unprecedented year-over-year growth" to their board of directors. Watch the short demonstration of how the market simulator works.
Note: for confidentiality, actual company names were removed.
Over the past decades, we've seen it all. We've helped clients succeed and get ahead in virtually every industry: automotive, financial, retail, health care, pharmaceutical, software-as-a-service, transportation and others. Based on what we've seen, we've focused our deep expertise on the 3 P's: Price, Product and People. (And if you're wondering where 'Promotion' is - we believe it's really part of these 3 P's). As one of the global directors from Bain Consulting said it: "We [Bain Consulting] can do most of the research ourselves, but we come to you guys with the toughest cases..."
Miklos Kremser, Founder and Principal was invited to speak at the 2020, Sawtooth conference in Stockholm, Sweden. His presentation on "Combining Choice-based Techniques with Bass Diffusion Models for New Product Forecasting" was very well received.
"I worked with Miklos and his team on a couple of high profile projects. I find their quantitative solutions innovative and refreshing and their leadership of projects to be intently focused on ensuring client confidence and satisfaction. I am not only a past client, but plan to be a future one."
Cindy Machles, CEO and Co-founder, Glue Advertising a top 20 NY Ad Agency
"We learned an immense amount about our own brand, our strengths and our weaknesses as a result of working with Choice Based Market Insights. Their scientific approach is very impressive. One very specific insight we gained was our customers' willingness to pay for different features and service attributes. With this knowledge, we restructured our price points so we are more aligned with what our customers want. We're positioned very well for the future thanks to Choice Based Market Insights.”
Troy Tait, Senior Vice President, Med One Group
"Choice Based Market Insights was very helpful in finding the optimal pricing structure for our complex offering. Their methodical and scientific approach to pricing was new for us, but one we needed as we grow. This time we had data to inform big strategies. They have an obvious expertise in strategic pricing and the skills to make sense of the complexity. We have since done another project with them as a result of our experience."
KC Brothers, Marketing Lead, WEAVE
"As we’ve spent the past year preparing to go to market with a new brand and product offering, we have relied on the team at Choice Based to provide invaluable insights into demand for our solution and into the behavioral and attitudinal drivers of our buyers. I was thrilled to receive a comprehensive report that turned previously held assumptions upside down, replacing them with clear, data-driven guidance about who we should be talking to and how we should be talking to them. This is a process we will repeat annually as we expand our product offering, distribution channels, and market share.”
Bill Brady, CEO, Troomi Wireless
"Vyne Dental delivers a smart and very comprehensive solution for our customers. To say it can be overwhelming to price and bundle the offering optimally is an understatement. We partnered with Choice Based Insights for their expertise in strategy. Miklos and his team were extremely helpful in identifying an optimal marketplace pricing structure. Their technical knowledge is extraordinary - and the level of insight is exactly what we needed."
Brad Royer, VP of Product Management, Vyne Dental
This slightly technical video shows how a market research project findings completely changed go to market strategy for a game developer. The video shows the "raw" findings and how these raw findings were used to find a target market that is much more interested in the product than the developer's original primary customer. The video is 'mildly technical' to illustrate the numbers and how these numbers then resulted in an "aha" insights.
While conjoint analysis is becoming an increasingly popular tool in marketers tool box, it is definitely more science than art... a lot more. Knowing what to pay attention to when applying conjoint analysis to pricing or product optimization studies can save you a lot of headaches - and embarrassment. This video will keep you from stepping on mines.
This video borders on a bit more technical, but if you manage products and brands - you need to know how market research attempts to replicate the real world purchase process - and decompose it. By decomposing consumers' decision processes, we're able to assign value to product attributes which empowers marketers to optimize what is put in front of any potential customer.
Okay... can you BE any more geeky? This is what Chander from Friends would have said after realizing we used powerful market research techniques to understand what women look for in a man. In reality, just as we used advanced statistical techniques to decompose men's appeal for women, the same techniques can be used to understand product and service appeal - to optimize its appeal. Enjoy!
Forecasting is an art - and most of the times it's wrong. However, add a bit of science to it - and you're wrong a lot less. In fact, this video shows how to combine choice-based techniques with the Bass diffusion model to give you an impressive tool to be pretty accurate when time comes to forecast sales for new products or product extensions.
This video walks you through the steps of creating a perceptual map of your products. Perceptual maps can help you position your brand or product more optimally and differentiate among the clutter. Science comes to the rescue again - but perceptual maps can be invaluable for strategic planning.
This video is not for the faint of heart. We're starting to get more technical in this explanation of how to use Naive Bayes approach to classify customers into segments. Especially when those segments were derived from a Latent Class MaxDiff exercise. For those, wanting to learn the steps - enjoy. For those who don't have the stomach, just know - this is the stuff that gets us up and out of bed in the morning. ;)
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