Pricing Opportunity
Definition
Pricing Opportunity refers to the potential for selling products at a higher price, as identified among customers within the same market segment.
Average Invoice Price = Average Unit Invoice Price for the particular Product ID and particular Customer Segment
Below Average Price = the particular Unit Invoice Price - Average Unit Invoice Price
Pricing Opportunity = Pricing Uplift = if Below Average Price < 0 then Below Average Price * Quantity * (-1) else 0
Cross Sell Opportunity
Definition
Cross Sell Opportunity refers to the potential for selling products that have not yet been purchased by a particular customer, based on the purchasing behavior of customers within the same market segment.
Formula
Formula = (average Quantity per Product and per Customer Segment - Quantity per Product and Customer) * average Price per Product and Customer
Example
Customer Segment is defined in the Company Parameters configuration – a list of fields the segment consists of.
For more information see PFXTemplate_CustomerInsights_Customer_Segment.
Revenue Increase
Definition
Revenue Increase refers to the potential for selling a greater quantity of a product, driven by the purchasing patterns of customers within the same market segment.
Formula
If Quantity per Product and Customer < average Quantity per Product and per Customer Segment, then:
Formula = (average Quantity per Product and per Customer Segment - Quantity per Product and Customer) * average Price per Product and Customer
If Quantity per Product and Customer > average Quantity per Product and per Customer Segment, then:
Revenue Increase = 0
Example
If Customer bought more than 500 quantity, then Revenue Increase = 0.
Customer Segment is defined in the Company Parameters configuration – a list of fields the segment consists of.
For more information see PFXTemplate_CustomerInsights_Customer_Segment.
Selling Opportunity
Formula
Selling Opportunity = Cross Sell Opportunity + Revenue Increase
% of Revenue below Target
Formula
Formula = Revenue Below Target / ∑ Revenue of Product ID of the customer
Calculated for Products with Revenue Below Target above zero.