Achieve optimal pricing for discrete and bundled products - low enough that customers will pay, but high enough that you're not leaving money on the table. Learn about dynamic, demand-based pricing in the SAP Hybris Revenue Cloud solution, helping you strike that perfect balance so you always get the most from your solutions. For more about SAP Hybris Revenue Cloud, please see: https://hybris.com/en/products/billing

1. PUBLIC
Stan Wandowicz,
October,2017
Price Your Products for
Maximum Impact

2. 2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
q Pricing Evolution in Financial Services
q Why Relationship Pricing
q Dynamic Pricing
q Use Case Examples
q Solution components
SAP Hybris Solutions for Dynamic Pricing

3. Dynamic pricing

4. 4PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Cost-plus
pricing
Competitor
based pricing
Elasticity
based
pricing
Relationship
Value
Management
1 2 3 4 5
Risk-based
Lifetime Value
§ Customerto FSI
§ FSI to Customer
Financial Services - Pricing methodologies are evolving
Benefits:
Ø Up to 15% increase in gross profits
Ø up to 18% increase in gross margin
Ø 90+ % decrease in revenue leakage
Relationship-based
Pricing Execution:
Relationship
based pricing
Degree
Of
Disruption
Source: A.T. Kearney
Processes
Source: A.T. Kearney, PricingImprovementSurvey

5. 5PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Why Relationship Pricing? … and why now?
• Aligned products and
services
• Potential to offset fees
• Loyalty rewards
• Convenience &
excellent service
• To be recognized
What Customers Want
• Increase products per
household
• Increase customer
loyalty & retention
• Reduce revenue
leakage
• Improve margin
performance
• Lower operations costs
What FSI’s Want
Establish Customer Centricity
Build Loyalty

6. 6PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Dynamic Pricing and Revenue Management
ü CUSTOMER
ü BANK – INSURANCE
COMPANY
ü COMPLIANCE
The right
product
The right
price
Accounting &
Profitability Analysis
• Activity based costing
• Producttransfer price
Marketing &
Sales

7. 7PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
TRANSFORMATION ENABLES NEW JOURNEYS, GREAT CUSTOMER
EXPERIENCES & OPTIMIZED REVENUE MANAGEMENT
Relationship pricing Dynamic price optimization Dynamic recommendations
ü Product bundles
ü Segment pricing
ü B2C Portal
ü Price Optimization
ü Multi-party revenue split
ü Bundle optimization
ü Price optimization

8. 8PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Price
Optimization
SAP Hybris - solution components
Core Applications
Performance
Management
FS-PER
Actual
Hybris Marketing
• Planning
• Insight
• Segmentation
• Recommendation
Hybris
Commerce
• Customer
Experience
• Product Content
• Offers & Contracts
Finance Systems CRMCore Product & Transaction Systems
FI FS-CD
msg.Loyalty
msg.IoTA
Hybris Billing
• Mediation
• Convergent Charging
• Convergent Billing
EARNIX
Digital Engagement Platform
Analytics & Performance

9. Thank you.
Contact information:
Stan Wandowicz
Industry Principal, Financial Services
SAP Hybris
+1-480-340-1810

10. 10PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
FSI Demo Booth D3
FSI Sessions:
FSI Demo Booth and FSI Presentations
Session Title Location Day Start End Speaker
52556 Price you products forMaximum Impact Microtheater 3 Wednesday 13:30 13:50 Stan Wandowicz
52557
Engage the Disengaged:Retail Banking in
the Digital World Microtheater 5 Wednesday 14:30 14:50 Birgit Kurz
52592
Avoid Commoditizationin the Insurance
Industry with Value Engagement Microtheater 5 Wednesday 17:00 17:20 Stefan Mueller

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