CASE STUDY Optimizing loyalty rewards pricing to drive

CASE STUDY Optimizing loyalty rewards pricing to drive customer satisfaction and profitability

We helped a online retailer optimize their pricing strategy Pricing strategy Satov approach We helped the client • How competitive is current pricing? Does that vary by category? • Analyzed transaction data to identify behavioral trends • Transition to a new pricing model • How can we improve pricing perception without hurting margins? • Conducted in-depth consumer research • How should we implement pricing changes? • Modeled impact of pricing changes • Develop a category management framework • Roll-out new approach to customers • Facilitated pricing philosophy workshops Does this sound interesting? Email us to get more details. 2

We looked at pricing holistically Client issues Pricing strategy framework Pricing strategy What is your competitive pricing position? Category strategy What products drive traffic? Which drive profit? Pricing approach caused inconsistent positioning No category framework to drive strategic pricing How should pricing vary across categories to optimize demand profitability? Product approach What tools/algorithms do you use to execute pricing tactics? No process for continuous optimization 3

We developed a strategic pricing framework High Value Image Builders (Highlight) • Lower volume, but critical to creating image of value Traffic Generators (Compete) • High price sensitivity • High impact on value perceptions • Key category Growth opportunities (Promote) • Low price sensitivity • Low volume Profit Engines (Expand) • Low price sensitivity/high margin • High volume Importance of value Low High Category volume For Satov Consultants Inc. (Satov) clients only; No portion of this presentation is to be distributed to other parties without prior express written consent from Satov 4

We mapped product categories to our framework Product category mapping Importance of value Category volume For Satov Consultants Inc. (Satov) clients only; No portion of this presentation is to be distributed to other parties without prior express written consent from Satov 5

Request more detail We helped improve client satisfaction while maintaining margins Recommendations Transitioned client to value based pricing framework Categorized products and determined strategic pricing approach Developed annual process to ensure continued testing and optimization Results We will talk this through yes there is something Anything from client? Could just speak to improved satisfaction, margins maintained 6