Why Understanding Cross-Price Elasticity Is Becoming More Important
Consumer packaged goods (CPG) companies are facing unprecedented challenges with soaring wholesale costs—up by 35% since 2019.
Retailers and consumers are pushing back against further price hikes.
In this new landscape, understanding cross-price elasticity is not just beneficial—it's crucial. As a result, IT, data, and analytics leaders need to evolve revenue growth management capabilities to develop better strategies. One key approach is to develop cross-price elasticity (CPE) capabilities to better navigate this new normal.
Consumer packaged goods (CPG) companies are facing unprecedented challenges with soaring wholesale costs—up by 35% since 2019.
Retailers and consumers are pushing back against further price hikes.
In this new landscape, understanding cross-price elasticity is not just beneficial—it's crucial. As a result, IT, data, and analytics leaders need to evolve revenue growth management capabilities to develop better strategies. One key approach is to develop cross-price elasticity (CPE) capabilities to better navigate this new normal.
Building a Data Foundation:Develop first-party data to drive product innovation, distribution, and pricing strategies. Enrich data, build a harmonized commercial data lake, and create foundational analytics.
Enabling Predictive Analytics: Use robust data science techniques to accurately measure CPE and demand transfers. Model and understand the impact of price changes before implementing them.
Developing Prescriptive Analytics Competencies: Optimize and recommend new prices considering customer price zones and product levels. Connect analytics with demand forecasts.
Creating Advanced Pricing Capabilities: Adapt to economic uncertainty, inflationary pressures, and consumer demand volatility. Use levers such as optimized cross-price elasticity, shrinkflation, and channel shifts.
Recognized by leading analyst firms and hyperscalers
2022 & 2023 Databricks Retail & CPG Partner of the Year Award
Recognized in Gartner Market Guide for Data Analytics and Intelligence Platforms in Supply Chain
'Leader' in ISG Provider Lens for Data Analytics - Data Engineering and Data Science
Forrester Wave Leader 2023 - Customer Analytics Service Providers
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