Price disparity analysis
The use of price disparity analysis is a powerful tool in understanding the comparative relationship between prices, volumes and revenue across clients
Price disparity executed
Price disparity analysis requires the sourcing data disparate from a number of often disparate sources. Information around client, product, volume price and revenue are often stored different systems across the organisation. Using data analytics technologies allow these sources to be pulled together in one place.
Calculating price disparity
Price disparity is a statistical approach that determines, for particular set of products, the discrepancy of prices paid by clients. Additional elements such as geography and volume bucketing can be added to refine the analysis further.
The use of price disparity analysis provides business stakeholders with a clear understanding of how different clients are priced. It also allows identification of pricing anomalies across client / product combinations.
We have successfully executed a number of price disparity analysis exercises for our clients. The use of disparity analytics resulted in significant revenue uplift for our client. We used product and client level capping logic to prevent client attrition.