Pricing Analytics

The telecommunications industry is in a constant state of fluctuation. Fierce competition and deregulation increase opportunities but at the same time fragment the market and lead to failure. As a result, intelligent price-plan modeling has become increasingly important. Pricing not only determines the sales potential and profitability of a business, but is now being used to serve as a marketing differentiator.

Often, competition manifests itself in frequent price wars and erosion of margins. To stay ahead of the game, most service providers will be tempted to change their pricing structures frequently, sometimes with short-lived promotional offers, sometimes with radical changes to how they charge their core customer base. Both pose business risks, and margins may be undermined in the attempt to increase sales.

This is where cVidya’s pricing analytics becomes indispensable. Existing information about customer behavior is a vital prerequisite for understanding pricing decisions. Pricing analytics analytical techniques enable providers to learn from current behavior and anticipate how customers will react when they change a price plan or a competitor introduces new rates. This ‘prediction capability’ is a key advantage. By modeling customer behavior, telcos can understand and forecast the implications of pricing decisions.

These models use powerful computational algorithms that leverage existing usage data, are simple to build, and generate accurate results quickly. With pricing analytics, CSPs will maintain their edge over their competition ensuring financial returns.