By transforming pricing, companies can drive significant value to the bottom line. BCG’s pricing and revenue management consulting teams helps build the capabilities, processes, and mindset that unlock the power of pricing—in good times and bad.
Jean-Manuel Izaret
To unleash the power of pricing, companies need a strong internal capability, one that’s fueled by technology—like advanced analytics—but rooted in people and processes. They need a test-and-learn culture that moves fast from idea to pilot to scale. They need to continually measure, assess, and improve. Because pricing and revenue management is a contact sport. And the most successful players adapt rapidly, and repeatedly, to maximize value for their customers—and themselves.
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Pricing has no textbook solution. Different companies require different pricing methods, strategies, and operating models. We bring functional expertise and cutting-edge data science to the key topics in pricing and revenue management.
Our client, a leading provider of software as a service for enterprises, wanted to better monetize its solutions, manage discounting in a more rigorous way, and streamline its SaaS pricing processes. Our B2B pricing consulting experts reduced the number of pricing meters by 70% and replaced an outdated user-based pricing model with a two-tier transaction-based strategy that differentiated high-value offerings from high-volume offerings. We developed “better together” suites to accelerate enterprise adoption—and cross-selling. We brought advanced analytics into the discounted logic and integrated discount guidance into the client’s CPQ—configure, price, quote— system through our Pricing Catalyst solution. The result: a 10% increase in annual contract value, and a 20% improvement in deal velocity.
A leading global food and beverage enterprise wanted to unlock new value by deploying next-generation revenue growth management solutions, including partnering with a key retailer to use AI to drive value for both companies. Our revenue management consultants helped the client activate an AI-driven analytical engine, which featured automated promotion recommendations and calendars tailored to each company’s strategic and business constraints. Close collaboration and data sharing, along with savvy change management (such as training on the new ways of working that the partnership required) helped deliver impressive results—including a 3% to 5% uptick in category retail sales and an improvement in margins of 300 basis points.
Our pricing consulting services combine functional and industry expertise with technology, proprietary resources, new ways of working, and a relentless focus on enablement to help clients master pricing and revenue management.
Without the right data and algorithms, companies can’t truly evolve their pricing methods. BCG X, BCG’s tech build and design unit, helps companies launch their next big bets and enable innovation at scale. Its world-class technologists, scientists, programmers, engineers, and designers enhance our pricing consulting with deep experience in AI and machine learning.
A customizable, easy-to-use software platform, Pricing Catalyst performs sophisticated pricing analysis and boils down complex data into actionable insights. It provides transparency into pricing activities and opportunities—helping companies to chart and own their pricing strategies.
It’s time to look at pricing decisions in a new light. Game Changer: How Strategic Pricing Shapes Businesses, Markets, and Society not only exposes the flaws in current pricing models, it also explains how the right pricing strategy can change the trajectory of your business, your industry, and in many cases, society as well.
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