Price Plan Optimization

There’s a lot of pressure on service providers to hold on to market share while hitting top-line growth and bottom-line profitability targets. But the growing homogeneity of service coverage, the speed of technology innovations and the proliferation of price plan options have intensified competition. Customer price/value expectations are also on the rise, and the confusion created by the dozens or even hundreds of price plans offered by service providers can significantly erode customer satisfaction.

The key lies in a provider’s ability to optimally price product and service bundles. After all, customers who feel that they are getting the best value from their service providers have a higher degree of satisfaction and lower churn rates.

How SAS can help

Does your current pricing strategy help you achieve your strategic objectives? Which customers are likely to migrate to a new price plan or switch to a competitor’s plan? How will new price plans affect your revenue and profitability targets?

SAS Price Plan Optimization can help you answer these questions and more by providing an integrated price plan strategy, performance analysis and forecasting, price plan migration propensity and interactive simulation. Using industry-leading SAS Analytics, the solution lets you:

• Find out which price plans perform best and which perform poorest.
• Identify your most and least profitable customers and market segments, etc.
• Develop detailed customer profiles across price plans.
• Understand the key drivers within each price plan.
• Determine which segments are the best targets for new offerings.

Why SAS for price plan optimization?

• Only SAS gives you the power of predictive analytics (using trend analysis, forecasting and predictive modeling), enabling you to:
• Build effective bundle offerings and meaningful price plans.
• Launch objective-based pricing to help protect and grow your market share while adapting to shifts in customer preferences and competitive dynamics.
• Project the future implications of pricing decisions so you can pre-empt risks.
• SAS' performance analysis capabilities help you:
• Understand how your current pricing strategy contributes to the success of your strategic objectives.
• Ensure continuous improvements in your pricing strategy.
• SAS' superior data integration enables you to surface insights hidden in disparate data sources (e.g., billing systems, CRM systems and activity-based costing systems).
• Migration propensity scores and price plan simulation values can be fully integrated into SAS® Campaign Management for Telecommunications.

Features

Price Plan Performance Analysis

• Assess the effectiveness of price plans across your entire product portfolio.
• Assess the performance of a specific plan or service.
• Profile customers across price plans.
• Identify outliers and which segments are good candidates for highly targeted product offerings.

Price Plan Migration Analysis

• Predict which subscribers have the propensity to migrate.
• Project future subscriber movement based on propensity scores.
• Profile subscribers with specific migration propensity across price plans.
• Analyze usage and revenue generation of those subscriber segments with migration propensity.

Price Plan Simulation

• Use simulation techniques to develop actionable price plans.
• Analyze the impact of new price plans on:
  • Your existing price plans and competitors’ price plans.
  • Revenue generation and usage among new subscribers.
  • The cannibalization effect among existing subscribers.
• Compare the revenue generation and profitability of specific subscribers or subscriber segments across all price plans, based on available history.
• Determine the optimal price plan for specific subscribers or segments.
• Simulate subscriber usage and revenue patterns across competitor price plans.

Ready to put THE POWER TO KNOW® to work for you? Contact your local SAS office or call us toll free at 1-800-727-0025 (U.S. and Canada). Contact SAS for pricing information and to learn more about our products and solutions. Sign up for one of our free e-newsletters.		Sign up for the SAS Communications, Content & Entertainment e-newsletter