Key Metrics

Below are brief descriptions of the method used to realize or measure the benefit from each value driver.

Value Drivers Key Metrics
Consistency/ Enforcement Analytics: Discount dispersion analysis. Impact of reducing outliers
Segmented Pricing: Additional value captured by moving from single to multi-tiered (targeted) pricing and discount levels
Fixing Margin Erosion Drivers: Identification of components driving margin erosion via waterfall and cost-to-serve analysis. Using benchmarks by product/segment to identify extreme values
Promotion Planning: Scientific analysis of elasticity and market behavior to analyze promotional effectiveness and design of optimized promotions
Bundling/ Up-sell/ Cross-sell: Market basket and attach rate analysis on complementary products & services
Productivity Improvements: People/ Process efficiencies are easy to quantify; but bigger uplift is in recapturing missed opportunities
Higher Customer/ Partner Satisfaction: Customer retention rate, share-of-customer wallet, customer lifecycle value and other measures can be used to quantify result of customer satisfaction