Healthcare insurance pricing strategies
This company knew how their prices varied in comparison to the market, but did not understand the likely effects of price elasticity on volumes of customers and profits.
First we reviewed their position in the market across different products. We then analysed historical data to understand elasticity and the attribution of variable costs to their different products. Finally, we created a new pricing strategy based on our findings.
Price optimisation model created and being used by company. Agreed solution increased revenues by 12% and doubled profits.