Segmentation for Scientific Pricing
Effective Strategy for Profitable Results

Whitepaper

To conduct an effective pricing analysis, the following factors play critical roles in utilizing segmentation to produce profitable results:

• Understanding the need for segments and its direct impact on setting the right pricing policy

• Effectively narrowing down the list of potential segmentation dimensions

• Knowing the strengths and weaknesses of three main alternative approaches to defining segments: Conventional Segmentation, Statistical Segmentation and Hybrid Segmentation

• Recognizing statistical techniques can do much of the heavy lifting in analysis, but each step of the process needs to be guided by managers who provide critical input from start to finish