The Current State
Today’s product pricing and profitability models in Financial Services continue to be oriented to mass-marketing. Even the most robust and modern pricing models in the middle of a customer-centric initiative still treat the customer as “one of many” in a pool of millions of customers in the same segment and demographic area.
There is a pool of potential customers who are lost because an insurance policy, checking account or loan is priced slightly higher than a competitor’s product.
There is now an opportunity to save and retain customers, one by one, through a streamlined process of personalized pricing based on knowledge of the customer’s entire portfolio of business combined with the power of statistical analysis.
With this pricing intelligence, a company has the power to move the customer into the “margin sweet spot”, remaining profitable, increasing acquisition and sustaining retention.
Furthermore, imagine linking your corporate strategy and balanced scorecard directly to margin and pricing objectives and related Key Performance Indicators. With Pricing Optimization and Intelligence, a CFO will have the insight and granular control to optimize margins and prices across all lines of business that share the same customer.
The Solution Framework
The road to Pricing Optimization and Intelligence begins with Affusion. Affusion’s balanced approach, using strategy, Business Intelligence practices and specialized application partners like Earnix, will allow you to unlock the opportunities within Pricing Optimization and Intelligence.
Your Next Move
Contact Affusion for an informative consultation on Pricing Optimization and Intelligence.