Iris Case Studies Enhancing Retail Pricing Strategy through IoT

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	Enhancing Retail Pricing Strategy through IoT Iris

Enhancing Retail Pricing Strategy through IoT

Iris

Applicable Industries	Retail
Applicable Functions	Procurement Product Research & Development
Use Cases	Experimentation Automation
Services	Testing & Certification
Challenge	In 2018, a major UK retailer was grappling with understanding key value drivers and price perceptions, including overall price satisfaction and cross-market benchmarking. The retailer was also interested in the effect of bundling on purchase decisions. The challenge was to gain insights into these areas to improve their pricing strategy and enhance customer satisfaction. The retailer needed a clear understanding of all customer value perception challenges and the role pricing and menu design plays within this. They also needed a detailed view on the customer pricing/value issues and potential menu design formats to take to in-market testing. Read More
About Customer	The customer in this case study is a major UK retailer. The retailer was facing challenges in understanding key value drivers and price perceptions, including overall price satisfaction and cross-market benchmarking. They were also interested in the effect of bundling on purchase decisions. The retailer was seeking to improve their pricing strategy and enhance customer satisfaction. They needed a clear understanding of all customer value perception challenges and the role pricing and menu design plays within this. They also needed a detailed view on the customer pricing/value issues and potential menu design formats to take to in-market testing. Read More
Solution	A 12-week project was undertaken to address these challenges. The project involved two main outcomes. Firstly, qualitative research was conducted through focus groups. This allowed the client to have a clear understanding of all customer value perception challenges and the role pricing and menu design plays within this. Secondly, quantitative research was conducted through online panels of 1500 people. This allowed the client to have a detailed view on the customer pricing/value issues and an answer on potential menu design formats to take to in-market testing. The project resulted in recommendations for addressing value-perception issues and price-perception issues, including forecasted impact on sales volumes. Two prototype menu boards were also developed to take to in-market testing. Read More Log in to view content
Contents

Applicable Industries

Retail

Applicable Functions

Procurement

Product Research & Development

Use Cases

Experimentation Automation

Services

Testing & Certification

Challenge

In 2018, a major UK retailer was grappling with understanding key value drivers and price perceptions, including overall price satisfaction and cross-market benchmarking. The retailer was also interested in the effect of bundling on purchase decisions. The challenge was to gain insights into these areas to improve their pricing strategy and enhance customer satisfaction. The retailer needed a clear understanding of all customer value perception challenges and the role pricing and menu design plays within this. They also needed a detailed view on the customer pricing/value issues and potential menu design formats to take to in-market testing.

About Customer

The customer in this case study is a major UK retailer. The retailer was facing challenges in understanding key value drivers and price perceptions, including overall price satisfaction and cross-market benchmarking. They were also interested in the effect of bundling on purchase decisions. The retailer was seeking to improve their pricing strategy and enhance customer satisfaction. They needed a clear understanding of all customer value perception challenges and the role pricing and menu design plays within this. They also needed a detailed view on the customer pricing/value issues and potential menu design formats to take to in-market testing.

Solution

A 12-week project was undertaken to address these challenges. The project involved two main outcomes. Firstly, qualitative research was conducted through focus groups. This allowed the client to have a clear understanding of all customer value perception challenges and the role pricing and menu design plays within this. Secondly, quantitative research was conducted through online panels of 1500 people. This allowed the client to have a detailed view on the customer pricing/value issues and an answer on potential menu design formats to take to in-market testing. The project resulted in recommendations for addressing value-perception issues and price-perception issues, including forecasted impact on sales volumes. Two prototype menu boards were also developed to take to in-market testing.

Impact #1	The project resulted in a clear understanding of all customer value perception challenges and the role pricing and menu design plays within this. The retailer now has a detailed view on the customer pricing/value issues and potential menu design formats to take to in-market testing. The project also resulted in recommendations for addressing value-perception issues and price-perception issues, including forecasted impact on sales volumes. Two prototype menu boards were also developed to take to in-market testing. This has enhanced the retailer's pricing strategy and improved customer satisfaction.

Impact #1

The project resulted in a clear understanding of all customer value perception challenges and the role pricing and menu design plays within this. The retailer now has a detailed view on the customer pricing/value issues and potential menu design formats to take to in-market testing. The project also resulted in recommendations for addressing value-perception issues and price-perception issues, including forecasted impact on sales volumes. Two prototype menu boards were also developed to take to in-market testing. This has enhanced the retailer's pricing strategy and improved customer satisfaction.

Benefit #1	Insights on key value drivers
Benefit #2	Insights on price perceptions
Benefit #3	Overall price satisfaction

Benefit #1

Insights on key value drivers

Benefit #2

Insights on price perceptions

Benefit #3

Overall price satisfaction

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Overview

Enhancing Retail Pricing Strategy through IoT

Operational Impact

Quantitative Benefit