#profitabilityimprovement

Originally Published on: QuantzigLeveraging Predictive Pricing Analytics to Improve Profitability for a Media and Entertainment Client Entertainment

Entertainment Industry Overview

The media and entertainment sector have witnessed consistent growth, fueled by the rising number of tech-savvy audiences. To navigate through price fluctuations and rapid technological changes, industry players are increasingly adopting pricing analytics. These solutions assist firms in comprehending customer buying decisions, enabling the tailoring of pricing strategies to meet consumer needs.

The client, a prominent media and entertainment industry player based in Europe, sought Quantzig’s pricing analytics solution. The goal was to gain actionable insights, concentrate on target customers, rationalize products, and utilize automation tools for well-informed business decisions.

Business Challenge

In the dynamic global landscape, the media and entertainment industry faces intense competition, making price optimization crucial. As the client aimed to introduce new services in niche customer segments, having an effective pricing strategy became imperative to avoid losing clientele to competitors. The client approached Quantzig to employ pricing analytics, aiming to enhance pricing and overall profitability by developing effective solutions to optimize spending patterns.

Leading businesses in the media and entertainment industry are turning to organizations like Quantzig to accurately forecast product demand. The pricing analytics experts provide solutions to develop robust price optimization models, control inventory costs, and improve customer satisfaction. These solutions empower organizations to use adequate tools for effective pricing strategies and profit margin improvement.

Learn more about our pricing analytics solution portfolio by contacting our experts.

Pricing Analytics Solution and Business Impact

The pricing analytics solution provided by Quantzig significantly enhanced the client's pricing strategies, resulting in an 8% increase in revenue and profitability, surpassing their highest profit margin. The solution included a comprehensive price optimization model encompassing competitive management analysis, cost models, optimization techniques, and customer elasticity models. This led to substantial improvements in profit margins, reduced maverick spending, and the development of better investment budgets.

Pricing Analytics Predictive Insights:

Improves revenue by a considerable percentage

Develops effective pricing strategies

Minimizes maverick purchasing

Identifies price arbitrages

Assesses the sensitivity of price changes

Improves retention levels while maintaining profitability through optimized pricing strategies