A Thing
The Green SheetGreen Sheet

The Green Sheet Online Edition

June 09, 2014 • Issue 14:06:01

New Products

Real-time pricing for ISOs

Product: PriceGuide
Company: Digital Management Inc.

Bethesda, Md.-based Digital Management Inc. designed PriceGuide, a predictive analytics tool, specifically for ISOs. By applying advanced analytics, the system can reportedly recommend optimal margins and merchant-specific pricing, as well as predict attrition and prioritize retention based on the value of individual merchant segments.

"Price optimization is an important step in maintaining your current customer base and attracting new customers," said Thiag Loganathan, President of the Big Data Insights division at DMI. This is especially true in today's customer-driven market, where establishing pricing strategies that effectively optimize margins without losing merchants can present challenges. Through peer benchmarking, ISOs can make micro-level decisions based on merchant clusters, according to DMI.

As a programming tool, PriceGuide delivers the "data architecture, pre-built data, statistical models, dashboards and reports to equip businesses with the intelligence they need to make better decisions," DMI said. For example, PriceGuide quickly identifies key factors that drive merchant attrition, flags high-risk merchants and then recommends measures to prevent losses from occurring, such as responding to pricing sensitivity based on similar data collected, the company noted. Additional features of PriceGuide include:

  • Peer benchmarking to build micro-level segmentation
  • Repricing alerts to focus on customers priced below standard
  • Attrition alerts to spot at-risk merchants and contributing factors
  • Cross-selling analytics to identify unserved merchant segments
  • Robust analytics to equip ISOs with vital merchant intelligence

"PriceGuide is an effective, user-friendly solution that establishes a holistic merchant-centric approach to pricing strategy," Loganathan said. "It's a great example of how advanced analytics tools can drive improved business performance."

One such example cited by DMI was the case of a large payment processor that implemented PriceGuide and was able to increase revenue by 15 percent and reduce attrition by 10 percent from previous levels. "With minimal training, the company deployed a merchant-centric pricing strategy for its 400,000 merchants and used modules for segmentation, benchmarking, attrition alert, cross selling and pricing calculator," DMI stated. end of article

www.dminc.com

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

Prev Next
A Thing