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outlines a strategy for achieving margin uplift, which is the increase in profit margins as a percentage of revenue under management (RUM).

Margin Uplift Expectation.jpg

Considerations and Commitment

By addressing these multifaceted considerations, the pricing optimization initiative can be structured and sequenced for maximum effectiveness and business value.

  • The Size of the Roll-out (RUM) is a crucial consideration that encompasses various factors to be taken into account. This includes the breadth of Categories, geographic Regions, and distinct Sales Channels that the implementation will span.

  • Another key element is the approach to the Roll-out itself - whether it will be executed in a Phased manner or involve Stand-alone initiatives targeted at specific areas. The potential Synergies between these different components must also be carefully evaluated.

  • Determining the Priorities & Selection of initiatives is of paramount importance. The Focus and Emphasis placed on each workstream will shape the overall impact and ROI.

Lastly, the Adoption of the new pricing capabilities is a critical factor. Aspects such as User Ramping, Saturation, and effective Change Management will be instrumental in driving lasting, organization-wide impact.

Size of Roll-out (RUM)

Categories, regions, channels

Phased Roll-out

Stand-alone initiatives

Synergies

Priorities & Selection

Focus & emphasis of initiatives

Adoption

Ramping, user saturation, change management

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