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Tariffs, “Sneakflation,” and the Pricing Tightrope
A hidden tariff tax, dubbed "sneakflation," is quietly raising prices on everyday goods and squeezing business profits. Faced with this pressure, many companies make the mistake of implementing blunt, across-the-board price hikes that can damage sales volume and customer relationships. This post details a smarter, surgical approach, using data-driven strategies like price elasticity analysis and scenario modeling to manage rising costs. Learn how to walk the pricing tightrope to protect your margins without alienating your customer base.
The Distributor’s Playbook for Growing Share of Wallet
Distributors are unknowingly losing profit from their best accounts due to blind spots in pricing, discounting, and product mix. Traditional sales reports can't detect this slow drain, allowing significant cross-sell opportunities and margin to go untapped. Guided purchase intelligence offers a disciplined framework, combining smart analytics with sales activation to systematically identify and recapture this hidden value. This playbook provides a step-by-step guide to grow your share of wallet and build a more resilient, profitable business.
How Hidden SKU Profitability Is Dragging Down Your Distribution Business (And How to Fix It)
Are you seeing revenue climb while margins get squeezed? Your distribution business is likely caught in the "Portfolio Trap," where high-volume but unprofitable SKUs secretly drain your bottom line. This article diagnoses the problem, revealing how a lack of granular data and reliance on outdated pricing models hide the true costs eroding your profits. Discover how to fix this by focusing on SKU profitability, enabling you to identify and manage these hidden drags to drive real financial growth.
The $1 Trillion Blind Spot: Why Most B2B Promotions Destroy Profit
What if your biggest sales driver was also your biggest profit drain? For most B2B companies, this is the hidden reality of their trade spend, where a lack of true promotion trade optimization allows margin-destroying activities to hide behind impressive-looking sales lifts. This article exposes the common fallacies—from the "top-line lift" trap to cannibalization blind spots—and provides an analytics-driven framework to turn your promotional budget from an unmanaged expense into a strategic growth investment.
What is Your True Net Price? The Ultimate Guide to B2B Commercial Psychology & Profit Realization
While companies obsess over list price, our research shows the average business systematically dismantles its own profitability from within. The real battle is won or lost in the price waterfall—the chasm between list price and the final pocket price where discounts, rebates, and allowances silently erode margin. Achieving optimal net price realization requires moving beyond siloed commercial psychology and spreadsheet chaos to a unified strategy that stops profit leakage at its source. This guide provides the framework to reclaim that lost margin by focusing on the one number that truly matters: your True Net Price.
Help! The Customer is Walking, Drop The Price!
When a key customer threatens to leave over price, the immediate instinct is to offer a discount to save the deal. However, this reactive approach is a trap that devalues your offering and fails to fix the real root causes, which are often a series of unaddressed service and operational failures. Learn a strategic framework to diagnose the true source of dissatisfaction and negotiate a solution that strengthens the partnership while protecting your profitability.
Stop asking for an "AI Pricing Tool."
For B2B firms in industries like wholesale, distribution, and manufacturing, the idea that AI in pricing is a magic black box can quickly become an investment sinkhole and a strategic dead end. Before thinking about AI, you must confront the two beasts that kill nearly every pricing initiative: Cross-Functional Chaos and The Profitability Mirage. Fancy algorithms do not drive pricing success—getting the basics right is.
The Role of Pricing & RGM In Managing Customer Churn
B2B customer churn can silently cripple growth, but many companies overlook its impact and fail to predict it effectively. This blog reveals how embracing proactive, data-driven strategies, especially through Pricing & Revenue Growth Management (RGM), can transform your approach from reactive damage control to strategic, profitable retention. Discover how advanced analytics can help you identify churn risks, optimize pricing, and unlock hidden growth opportunities, safeguarding your P&L and empowering your sales teams.
Why Your CPG Needs an Integrated Pricing & RGM Navigator (And Why It Beats Turnkey Solutions)
Mid-market CPGs are struggling to make profitable decisions due to data scattered across disparate internal and external systems. This fragmentation leads to significant margin erosion, reactive strategies, and a costly dependency on rigid, turnkey analytics solutions that fail to provide a complete picture. By embracing an integrated and owned Pricing & RGM Navigator, companies can unify their data, unlock predictive insights, and build true organizational capability. This empowers teams to move from reactive "fire drills" to a proactive, commanding position in the market.
The Tariff Tightrope: Why Walmart's Price Hikes Signal a Reality Check for American Consumers
Walmart's recent announcement of price hikes due to tariffs serves as a stark reality check, confirming that American consumers will ultimately bear these costs. This isn't just about Walmart; it signals a broader economic shift impacting shoppers and presenting significant challenges for CPG companies. This article delves into why these price increases are happening and outlines crucial strategies for CPGs to navigate this turbulent environment.
The Sinking Feeling of Weak Pricing Power? BATNA is Your Anchor
That sinking feeling when sales asks for another discount or competitors drag you into a price war isn't just anxiety; it's often a sign of weak pricing power. This reactive negotiating, often driven by the lack of a quantified walk-away position, bleeds profits and erodes margins. Discover how defining your Best Alternative to a Negotiated Agreement (BATNA) can anchor your pricing, stop margin leakage, and empower you to secure better deals.
An RGM Deep-Dive Into Spotify’s Latest Price Rise
Spotify recently implemented its second major round of price hikes in under two years, significantly increasing rates in Benelux countries and signaling further rises across Europe and Latin America.
This aggressive pricing strategy follows Spotify's first full-year operating profit in 2024, indicating a strategic shift from subscriber growth to boosting ARPU and profitability. The company is employing a "ladder pricing" approach, testing price elasticity in smaller markets before wider rollouts to manage churn and investor expectations. However, this creates widening price gaps with competitors, forcing Spotify to increasingly rely on its unique value proposition and bundled offerings like the planned "Music Pro" add-on.
Elevate Your RGM Strategy: Monetizing Your Distributor Data
Distributors often overlook the potent value locked within their operational data, focusing primarily on logistics and price competition. By transforming this digital footprint into actionable insights and value-added customer solutions, you can unlock significant new revenue streams.
This strategic approach not only boosts profitability with higher margins but also builds lasting customer loyalty. Discover how leading distributors are monetizing their data to create more resilient, future-proof business models grounded in predictable revenue.
Dynamic Pricing for B2B: Real‑Time Strategies to Optimize Wholesale and Distribution Margins
Facing intense margin pressure from volatile costs, traditional static pricing is proving inadequate for B2B wholesale and distribution firms, often leaving an 8-11% profit lift unrealized from even minor price optimizations.
Relying on outdated annual lists or simple cost-plus models prevents effective reaction to real-time market shifts and specific customer sensitivities. This article explores how implementing AI-powered dynamic pricing strategies provides the crucial agility needed to optimize margins, navigate complexity, and build sustainable profitability.
Tariff Shockwaves & Margin Erosion: Why Mid-Market Industrial Firms Need Revenue Management as a Service Now
Tariffs have evolved from a temporary inconvenience to a persistent driver of costs, forcing mid-market manufacturers and distributors to rethink their pricing playbook.
By leveraging elasticity-based Revenue Growth Management, leaders can defend margins and even capture new market share in turbulent environments. Revify Analytics’ RGMaaS platform delivers these advanced capabilities in a matter of weeks, transforming reactive cost-plus strategies into proactive, data-driven wins
Pricing Strategies to Counter Tariff Impacts
Rising tariffs create significant financial pressure, demanding proactive and strategic pricing adjustments. Companies must move beyond simple cost-plus models to deeply analyze their entire value chain, identifying hidden tariff-related costs and supply chain vulnerabilities. This involves understanding direct and indirect cost increases, assessing competitor reactions, and recognizing how currency fluctuations exacerbate the impact.
A "one-size-fits-all" pricing response is inadequate; a nuanced approach is crucial, based on the specific "pricing game" a company plays (Cost, Uniform, Power, or Custom). It involes differientiating between products, presenting different strategies for each game. This framework lets companies anticipate how tariffs will impact their specific market and creates catered strategies. By using analysis and scenario modeling, companies can protect margins while delivering value.
Solving the 5 Most Pressing Pricing & RGM Pain Points for Mid-Market CPGs: Your Curated Resource Library
Mid-market CPG brands are grappling with margin pressures, ineffective promotions, and fragmented data that hinder profitable growth. Without a structured approach to Pricing & Revenue Growth Management (RGM), many rely on outdated tools and reactive strategies, leading to revenue leakage and missed opportunities.
The Revology CPG Resource Library provides curated insights, frameworks, and advanced analytics tools to help brands optimize pricing, improve trade spend efficiency, and drive sustainable profitability—empowering teams to take control of their RGM strategy with data-driven decision-making.
Pricing Power for Manufacturers: In-Source and Own Your Pricing and RGM Analytics Without Breaking the Bank
Uncover how manufacturers can strengthen their margins and boost incremental volumes by bringing advanced pricing and Revenue Growth Management (RGM) analytics in-house—bypassing the steep costs of one-size-fits-all software. It outlines a clear process—spanning data integration, advanced modeling, and user-friendly dashboards—to unify commercial teams around real-time, actionable insights. Through real-world case studies, the piece demonstrates how a well-designed in-house RGM capability can yield measurable profit gains and sustain competitive advantage in today’s fast-paced market.
Pricing Gone Wild: Lessons from ChatGPT, X (Twitter), and the High Cost of HiPPO Decisions
Pricing decisions are often swayed by the "HiPPO" effect—Highest Paid Person's Opinion—resulting in gut-based calls rather than data-driven strategies. High-profile examples, like Sam Altman's $200 ChatGPT Pro subscription and Elon Musk's $8 Twitter checkmark, illustrate the risks of ignoring robust pricing frameworks. To maximize profitability, companies must treat pricing as a strategic function supported by data, governance, and cross-functional collaboration.
Driving Profitable Growth in Retail with Pricing Tools and Software
Pricing in retail isn’t just about numbers anymore—it’s about staying ahead in a fast-changing market. With the right tools and strategies, like AI-powered insights and dynamic pricing, retailers can move beyond guesswork to confidently grow profits and win customer loyalty. At Revology Analytics, we help you turn pricing into your secret weapon for growth.