Dashboard Analysis Step by Step
Step 1-Analyze Customer Insights/Sales Insights Dashboards
A pricing analyst opens a Customer Insights / Sales Insights Dashboard to gain insights into any underperformance in the product portfolio and identify potential for revenue improvements. The insights can be understood through these key aspects:
Data-Driven Decision Making
Insight Generation: The dashboard provides real-time data analytics, allowing the analyst to identify trends, patterns, and anomalies in product performance.
Informed Strategies: By analyzing data, the analyst can make informed decisions about pricing strategies, promotions, and product positioning.
Revenue Improvement Opportunities
Dynamic Pricing Strategies: Insights gained can lead to the implementation of dynamic pricing strategies that respond to market conditions and customer behavior.
Product Portfolio Optimization: The analyst can identify which products to promote, discount, or phase out, leading to a more efficient product portfolio.
Enhanced Customer Understanding
Customer Segmentation: The dashboard allows for deeper insights into customer segments, helping to tailor pricing and marketing strategies to specific groups.
Feedback Loop: Continuous monitoring of customer responses to pricing changes can inform future pricing strategies
Competitive Advantage
Market Positioning: By understanding sales performance relative to competitors, the analyst can adjust strategies to maintain or improve market share.
Agility: Quick access to insights enables faster response to market changes, ensuring the company remains competitive.
Step 2-Root Cause Investigation
The pricing analyst starts investigating the root cause of why the identified products are underperforming to create recommendations for the pricing teams to improve. The value of this process is:
Informed Recommendations
Targeted Solutions: By understanding the specific reasons behind underperformance, the analyst can create tailored recommendations for the pricing team that directly address the issues.
Strategic Focus: Recommendations are more strategic and relevant, leading to more effective pricing adjustments or marketing initiatives.
Enhanced Decision-Making
Data-Driven Insights: Root cause analysis relies on comprehensive data, allowing the pricing team to make decisions based on evidence rather than assumptions.
Risk Mitigation: Understanding underlying issues helps in anticipating potential risks and avoiding ineffective pricing strategies.
Improved Product Performance
Identifying Key Factors: The analyst can pinpoint factors such as pricing misalignment, competitive pricing pressures, or changing customer preferences that contribute to poor sales.
Actionable Insights: Insights derived from the analysis can lead to actionable changes, such as adjusting prices, enhancing features, or repositioning products in the market.
Customer-Centric Approach
Understanding Customer Behavior: Investigating underperformance often includes analyzing customer feedback and purchasing behavior, leading to a better understanding of customer needs and preferences.
Tailored Pricing Strategies: Recommendations can include personalized pricing strategies that resonate more effectively with target customers.
Long-Term Strategic Planning
Sustainable Practices: By addressing root causes, the pricing analyst contributes to creating sustainable pricing practices that can adapt to future market changes.
Portfolio Management: Insights can inform long-term product portfolio strategies, helping to phase out underperforming products or invest in high-potential areas.
Competitive Advantage
Proactive Adjustments: By identifying and addressing issues before they escalate, the organization can maintain a competitive edge in the market.
Market Responsiveness: A thorough understanding of performance drivers allows the company to respond more swiftly to competitive actions or market shifts.
Collaboration and Alignment
Cross-Functional Engagement: The investigation process often involves collaboration with marketing, sales, and product teams, fostering a unified approach to addressing performance issues.
Shared Understanding: It creates a shared understanding of market dynamics and customer needs across departments, enhancing overall business strategy.
Step 3-Pricefx Copilot Recommendation
A recommendation is created though the use of AI Assistant of Pricefx Copilot with suggested quick actions to be handled by the pricing or sales teams in the price setting area. Here is how the process unfolds:
Analyzing the Sales Insights Dashboard
Data Visualization
The Sales Insights Dashboard presents key metrics related to sales performance, pricing effectiveness, and market trends in a visually intuitive format.
Users can easily access data such as sales volume, revenue, margin analysis, and customer segmentation.
Identifying Trends and Patterns
The dashboard allows pricing analysts and sales teams to identify trends over time, such as seasonality in sales, price sensitivity among different customer segments, and the impact of previous pricing changes.
Anomalies or unexpected changes in sales performance can be quickly spotted, prompting further investigation.
Creating Recommendations
Integration with Pricefx Copilot
AI-Powered Analysis: Pricefx Copilot leverages machine learning algorithms to analyze the data presented in the Sales Insights Dashboard.
Contextual Recommendations: Based on the insights gathered, Copilot generates recommendations tailored to the current sales environment and pricing strategies.
Actionable Insights
Specific Recommendations: The insights lead to specific recommendations that address observed trends or issues. For example, if a product is underperforming, Copilot might suggest a price reduction or a promotional campaign.
Quick Actions: Each recommendation is accompanied by suggested quick actions that pricing or sales teams can implement immediately.
Suggested Quick Actions
Price Adjustments
Dynamic Pricing Changes: Recommendations may include adjusting prices for specific products based on their sales performance, competitive landscape, or customer feedback.
Promotional Strategies: Launching targeted promotions for products that are not meeting sales expectations can be suggested.
Sales Strategies
Targeted Outreach: Sales teams may be advised to focus their efforts on high-potential customer segments identified in the dashboard analysis.
Upselling and Cross-Selling: Suggestions might include strategies for upselling or cross-selling based on customer purchasing patterns.
Market Positioning
Competitor Price Monitoring: Quick actions could involve monitoring competitor pricing and adjusting strategies accordingly.
Product Repositioning: Recommendations may suggest repositioning certain products in the market to better align with customer demand.
Step 4-Live Price Grid Updates
The suggested action is taken by the pricing or sales teams to adjust the list price in the Live Price Grid to utilize the potential identified in the analytical Dashboard, Here is how the process works:
Suggested Actions to Adjust List Price
Accessing the Live Price Grid
The Live Price Grid serves as the central tool for pricing teams to make real-time adjustments to product pricing.
Teams can view current list prices, compare them with recommended prices, and analyze the impact of potential changes.
Implementing Price Adjustments
Adjusting List Prices: Based on the recommendations from Copilot, pricing or sales teams can adjust the list prices directly in the Live Price Grid.
Price Increases: For high-demand products, teams may increase prices to maximize revenue.
Price Decreases: For underperforming products, a price reduction may be implemented to stimulate sales.
Monitoring Impact
After making adjustments, teams can continue to monitor the Sales Insights Dashboard to evaluate the impact of the changes.
Key metrics such as sales volume, revenue, and customer feedback can provide insights into the effectiveness of the pricing strategy.