In this highly dynamic and competitive sector, price changes across a few days can either create huge profit or wasted opportunity.
An Australia-Pacific energy company was losing revenue from their retail network as they were making decisions based on sales volume and cost-of-goods data that was a couple of days old. When it comes to calculating margin and price setting in a fast-paced and competitive sector, price changes across a few days can either create huge profit or wasted opportunity. Strategic pricing not only meant better margins for the company, but they also discovered that their generic “best guess” pricing was driving valuable customers away by not offering competitive dynamic prices.
We understood they needed a real-time, predictive view of their data and accurate forecasting of what margins were likely to be today, based on realistic volumes. But most importantly this would enable them to make educated pricing decisions and balance ROI within in a highly dynamic and competitive market.
In a previous project with the energy company, we had established a datamart which consolidated all of their required source data and predictive modelling into one central hub. Prior to this, the company relied on Excel spreadsheets and very old (but business critical) models on legacy systems that would require constant maintenance to keep running and weren’t centralised in any way. Reporting was a manual effort which created frustration, inaccuracy and inefficiencies in their business.
Using the datamart, we could deliver a personalised and streamlined reporting system for their whole retail network’s daily margin, that was delivered and available up-to-the-minute.
The company now have accurate and robust pricing data and enjoy a real-time view of captured margin on any given day. The accuracy and visibility empower them to make competitive and quick pricing decisions that lead to significantly more profitable volume and sales increases – to the tune of millions of dollars annually.
Furthermore, Datamine made their reporting system totally auditable, trackable and re-runnable, reducing risk to the business. This solution provided a stable reporting system for years, and the backbone of their pricing optimisation strategy.
If your energy or utilities company is making pricing decisions based on out-of-date or chaotic data, we're here to help.
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