Catalyst Strategies’ pioneering pricing and offer structure recommendations led to increased membership, as well as higher business profitability. General Manager, Yahoo! Personals
You have a laundry list of potential new features for your product, but you aren’t clear on which features are important to your target market. You have limited information on price sensitivity and aren’t sure what combination of features and price will maximize revenue, share, or profitability for the company.
Maximize Share and Profitability
Catalyst Strategies’ proprietary approach drives optimal market share, revenue, and profitability. We use simulation and modeling techniques to map out the most advantageous set of features and price for a given product or service. Through offer price and offer structuring we:
- Determine the right price for each of the products in a product line
- Define the features that are most likely to motivate customers to buy
- Measure the impact of various features on product volume, revenue, and profitability
- Determine the best combination of features and price to drive customers to trade up
- Establish feature combinations for different market segments
- Help you respond with confidence to competitive price or feature changes
By combining choice modeling with financial modeling, we find the right mix of features and price that yield optimal business results. The research predicts how consumers make feature and price trade-offs. We use these findings to estimate demand and add a cost model, which enables us to optimize any product or service offering for market share, revenue, and/or profitability. Our approach is:
- Business-Results Oriented – We start by articulating the pricing objectives—from share gain to profit enhancement to revenue acceleration—and the customer segments that are crucial to the business. And we focus on delivering the right answer based on these parameters.
- Market Driven – Features and pricing are defined based on customer needs and competitive situation as measured with quantitative conjoint research with target customers.
- Fact Based – Our unique choice and economic modeling ensures that recommendations consider market demand, pricing, competitive offers, and costs associated with delivery of features.
- Practical – The process and results are clearly explained to ensure buy-in from executives, sales teams, and channel partners.
- Actionable – New offers are converted into concise business requirements and go-to-market plans to ensure a successful launch of the new feature set and pricing model
The Right Offer Based on Market Needs
Catalyst Strategies approach is unique and proven. We combine research and financial modeling to yield the best opportunity for your company’s success.
Call us to deliver substantial increases in market share, revenue, and profitability.