MARGIN, REVENUE & PRICING

Pricing and margin protection

Every commercial decision has a cost and a probability of success.

AI helps measure both — by segment, by customer, by channel.

• Cross-selling or up-selling opportunities insufficiently exploited;
• Customers at risk of disengagement identified too late;
• Discounts, pricing or commercial actions insufficiently linked to actual margin;
• Commercial trade-offs too dependent on intuition or average rules.

01:  Customer cross-selling & up-selling

Identifying the most probable additional sales helps focus commercial effort on the customers, offers and categories where expected margin justifies action.

In a distribution case, the module identified 4,660 profitable opportunities across 1,023 customers. Under commercial assumptions, these opportunities represented an expected net gain of €5.6m.

02: Customer attrition & revenue loss risk

Anticipating disengagement helps protect existing revenue before the loss materialises.

In a banking case, the model targeted 333 customers out of 2,000, of whom 229 were actual churn cases. Under cost and action-success assumptions, the expected economic gain on the test sample was estimated at €125k.

03: Commercial sensitivity and margin-volume trade-off

Models can help identify the segments where a commercial action truly creates value, and those where it consumes margin without sufficient effect.

The objective is not to increase sales at any cost, but to link each commercial action to an expected margin, an action cost and a conversion probability.

When should a diagnosis be initiated?

A diagnosis is relevant when three conditions are met:

• sales, customer, product or commercial action history is available;
• margin, action cost or customer value are measurable;
• ability to translate recommendations into targeted commercial actions.

Qualify a revenue & margin use case