From Patterns to Profit: Data-Driven Dynamic Pricing
Dynamic pricing is the practice of using live data, probability theory, and the mathematics of optimization to tie your pricing schemes to all relevant market mechanisms that drive total demand and maximum profit.
OWL can unravel and model the intense mathematical processes involved in choosing the “best price”. Whether you are setting admission fees for your next conference, ticket prices for opening day, or 365 days of rates for a chain of resorts.
We methodically explore your data. We marry our expertise in revenue optimization best practices and our extensive technical experience. We use analytics to successfully challenge conventional wisdom and change the way decisions are made. We use analytics to tap the vast quantities of data on your guests and competitors to reassess your course for the future so you may thrive in tumultuous times. We use optimization algorithms and we build you a model that is a precise fit to your Revenue needs. Scientific, Pricing confidence? Solved.
OWL’s Building Blocks
To go from data to profit, you need a team that balances its enthusiasm for the limitless potential of analytics with the discipline and awareness that comes from having a mature business acumen. While we are proud of our unique technical competencies, our practical approach is born out of our ability to formulate, clearly articulate, and quickly implement solutions that drive sustained profit.
All successful analytics projects start with a clear articulation of what the new reality will be after implementation. While this approach may be obvious, it is seldom followed. In absence of a robust plan, too many companies default to the “discovery” scheme wherein analysts immediately dive into large databases with little guidance of how to filter the research with real potential from the academic. At OWL, we always begin with the end in sight and we are guided by the principle that the ultimate objective of any business endeavor is to create value from purposeful customer engagement.
The majority of business data is collected for the purpose of billing and fulfilling. Accordingly, most databases are programmed to simplify the process of capturing transactions and not for discovering patterns inherent in them. Analytics thinking obligates managers to revalue every data stream in terms of how it contributes in moments of making important decisions. Inevitably, managers realize that their “organic” data is plentiful but often contaminated, incomplete and even irrelevant. OWL’s opening act is to re-task your data from simply “logging” activities to “signaling” significant events. In the process, your data becomes easier to collect, more organized, and more predictive.
The latency of business reporting is responsible for the reactive nature of managerial decision making. While it would be illogical to reveal the score of a game only after the final whistle, many companies still wait on month-end financials before proposing future tactics. OWL creates customized intelligence mashups that combine live transaction statistics, historical performance, managerial targets, and prescriptive advice. By broadcasting the vital signs of customer engagement in real time, these dashboards empower managers to exploit the opportunities present in the “now”.
Every business is involved in a unique set of interactions within a system. Customers, employees, vendors, and technology engaged in a “dance” called the supply chain. Analytics is the process of translating those interactions into advanced mathematical equations that model the real world. By capturing the intricacies in the behavior of each participant in the supply chain, models give you insight into what will happen when you try to modulate their interactions. OWL’s ultimate purpose is to build and maintain prescriptive models that guide our clients to decisions that result in uncommon achievements.
Systems of Models
To achieve Total Enterprise Optimization, the policies, informal heuristics, and relevant market forces that guide functional decisions must be integrated into a hierarchical set of mathematical functions. This relational framework of financial and probabilistic interdependencies is used to expose the complexities of balancing the often incongruous objectives of sales, marketing, and operations. Once assembled, OWL employs the algorithms of optimization to reveal the networked decision variables that have the greatest impact on your business as a unified whole. This is when breakthrough strategies are birthed and the transformational power of analytics reaches its “actualized” state.
Let’s start growing your revenue today. Contact us now to talk about the opportunities that you are missing.