McKinsey & Company today announced that Periscope by McKinsey has been recognized as a Leader in the IDC MarketScape: Worldwide Retail Price Optimization Solutions 2023 Vendor Assessment (doc #US49458922, March 2023). McKinsey was also named a Leader in the IDC MarketScape in 2021-2022 (doc #US48393721, December 2021).
The Periscope by McKinsey platform combines world-leading intellectual property, prescriptive analytics, and a suite of marketing and sales analytics solutions, including pricing and promotion. This unique combination helps companies drive revenue growth and fuels Growth, Marketing & Sales’ transformational client offerings.
Price is often the first consideration of consumers when making a purchase. For retailers, setting the right price at the right time is crucial to driving growth and profits, yet few are able to make informed decisions using real-time data and market analyses. Only 15 to 20 percent of retailers have some form of dynamic pricing capabilities.
According to the IDC MarketScape report, “Together with McKinsey’s professional services, Periscope’s customers benefit from a comprehensive pricing solution that includes strategy, analytics, technology, process optimization, and change management, which is highly tailored to the company and its goals while staying on a long-term upgrade road map. McKinsey’s solution focuses on the full impact potential with a full pricing life-cycle package.”
The IDC MarketScape report identifies some of McKinsey’s strengths:
- Sophisticated pricing, expert-focused solution: McKinsey brings together over 750 full-time employees dedicated to pricing science, with a complement of strategic consultative service. Our team’s proficiency in elasticity and the integration of rule-based capabilities create a strong user interface. And our strategic analytics tools mean long-term customer success and margin growth. We know how to push our customers to drive pricing excellence, bringing unique expertise to develop pricing capabilities.
- Customer responsiveness: McKinsey customers are highly confident that we understand their current and future needs, and are willing to invest in our platform to support future growth opportunities.
- Customer satisfaction: McKinsey customers are highly satisfied with Periscope and the sales and customer service processes. They are highly likely to recommend the company to other colleagues in the industry. Customer interviews highlight McKinsey’s ability to customize solutions to fit customer needs.
“Price optimization has become even more important as the economy emerges from the pandemic and inflationary pressure requires considered tactics that meet retailer and consumer needs. Retailers must evaluate and leverage price optimization solutions to reduce costs, maintain profitability, and continue to offer effective price points that consumers will be willing to purchase at,” said Ananda Chakravarty, vice president for Retail Insights at IDC, and author of the report. “Several factors play a part in price, and all of them lead back to driving the retail business. Retail is about selling merchandise, and price is a key driver.”
Zachary John, a partner and Periscope leader at McKinsey & Company
“As revenue growth experts, we focus on helping retailers build a data-driven operating model to make forward-looking decisions. Their ability to harness competitive intelligence and consumer insights to build, refine, and, in real-time, optimize their pricing strategy is of critical importance to protecting margins and driving growth. Our powerful combination of world-class consulting services and Periscope pricing solutions helps our clients drive analytics and insights into the economics of pricing and robust execution.”
Tobias Wachinger, a senior partner at McKinsey & Company
“As retailers and companies feel the pressure from all sides to rein in prices and adapt to inflation, the time is now to refine their pricing strategies. And what the outperformers are realizing is that they can do both – strengthen customer relationships and overall margins. To create long-term value, companies should take a nuanced approach to pricing, promotion, and assortment strategy that is grounded in rich analytics – one that can inform customer’s willingness to pay, the margin performance of a product, and service level expected from the price change. We are humbled by the IDC MarketScape’s recognition, and it’s a testament to the work we do in service of our clients and their customers.”
The 2023 IDC MarketScape for Worldwide Retail Price Optimization Solutions 2023 Vendor Assessment excerpt can be accessed here.
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