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SPA Analytics

STRATEGY

SPA will help you to identify the appropriate pricing strategy and architecture to maximize value creation for your customers and value capture for your shareholders.

We quickly and efficiently help our clients:

  • Segment their customers and products
  • Develop pricing sensitivity ratings for customers and products
  • Build a data-driven pricing architecture that converts strategy into action and impact

We have helped hundreds of clients master this process and achieve impact of two to four (or more) margin points in their business

OUR PROCESS

We work with your team to think strategically about pricing; segment your markets; analyze your invoice data; and rebuild your pricing structures to maximize your profitability. We help you build the guidelines and process metrics to ensure effective execution. We help you train your sales force in the practical and cultural dimensions of this process.

Our Process works best for companies with:

  • Significant Customer-Level Complexity Hundreds to thousands or more customers; and/or multiple markets with differing price sensitivites
  • Significant Product-Level Complexity Hundreds to thousands or more products or service combinations
  • Price Variability due to Sales Rep discounting practices

WHY IT WORKS

We identify under-priced customer-product combinations using our proprietary customer indexing analyses and customer and product sensitivity analyses. Using your invoice data, we analyze every customer pricing transaction to assemble a recommended architecture of price levels to improve your customer- and product-level price structures, as well as your consistency of execution. We help you spot leakage points in your pricing, and master your pricing process.

Our recommendations take into account where your pricing is today, while building a plan to migrate to more profitable pricing performance levels. We help you build these pricing structures in your own enterprise system, avoiding exhausting, costly software integration projects or time-consuming, distracting consulting engagements.

MANAGEMENT

By developing the metrics and processes to reliably execute your company's pricing strategy, you'll ensure appropriate price differentiation, set standards for consistent execution, and build the confidence in your sales reps necessary to ensure that a more profitable pricing strategy is followed.

You'll learn to take control over:

  • Measuring the actual price performance of customers, sales reps, branches, and product and service offerings
  • Profiling the price sensitivity of customers, product families, SKUs, part numbers and services at the customer, market segment, and sales rep levels
  • Setting pricing performance standards
  • Developing pricing processes and management policies
  • Training and developing incentives for sales reps
  • Developing quick wins around freight recovery, credit and payment issues, and minimum order quantities