Industries : Media
Case Study
Improving Profits by Standardizing Prices Across the Portfolio
Client Situation:
Executives at a leading online media company were concerned that their pricing approach neither adequately captured premiums for high-demand ads nor adequately imposed price rationality in a rapidly growing market. With literally millions of possible pricing combinations, the standard rate card seemed to fall short. Pricing analysts and business managers were also keen to understand and benefit from the cross-elasticity they thought to exist in their product portfolio.
Approach:
An initial First Value
engagement, framed the opportunity for a Price Director Activation. Five months later the Price Director activation was complete. In parallel to the software Activation, the company realigned their pricing processes to better deliver value to customers.
Impact:
Today, Price Director serves as the backbone of price setting and analysis activities. Through Rapt's sophisticated analytics, the company is able to capture additional value from product interactions across the portfolio while better serving the needs of key brand advertisers. The impact on the business continues to be significant. In a recent report by Laura Preslan of AMR Research (Price Optimization: A Tale of Two Media Companies), a senior leader on the project said that "the investment in prices management was trivial compared to the return on the entire initiative."
What does this mean for me?
For pricing analysts, sales managers and executives, Rapt offers software and services to improve decision-making, pricing and ultimately profitability. Our track record in the media industry is unsurpassed.
Rapt Report
Learn how to organize the pricing discipline in your organization to achieve pricing excellence.
