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Price and Promotion Optimization

Profitable Pricing with Branding Impact

Price and Promotion Optimization Cascade worked with Schneider National (SNI) to set lane prices, tailored to each account and origin-destination market. The SNI key objective was to set more profitable prices in a highly price sensitive environment, while leveraging the brand advantage that the company had built with its quality of service and multiple service offerings.

Cascade and SNI developed Customized Pricing to integrate market and cost information with strategic business objectives to set lane-level prices by account. The market information included customer reactions to past pricing actions; the customer’s prior spending patterns with the client; geography; and other customer characteristics such as industry segment and size of business. The cost information captured how well the customer’s business “fit” within the dynamic operation of SNI's network. For example, was the customer’s business likely to create a regional imbalance in network capacity or did it fill an otherwise empty back haul?

The Customized Pricing solution resulted in significant gains in network profitability. These gains were leveraged off of the ability to successfully forecast account buying behavior – how customers are likely to respond to different price offerings – even with the limited lane-level customer data that is typical of this type of transportation business. Customized Pricing has been successfully applied across the entire customer base and to the full product portfolio, with significant improvements in pricing process efficiency as well as profitability.

Cascade Consulting Partners
240 East 15th Avenue, Eugene, OR 97401
Phone: 541.942.5914 | Fax: 541.484.1498 | Email
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