KEENALYTIX – CASE STUDIES
Decisions that held.
Pricing decisions look simple on the surface but are shaped by complex interactions between pricing, promotions, customer behavior, and market dynamics.
The following examples illustrate how transaction-level analysis can help leadership teams understand these dynamics and make better commercial decisions. Anonymized at client request.
QSR · 12 WEEKS (DESIGN) · ONGOING (PARTNER)
Building Pricing Discipline
Ad hoc, overly aggressive and mis-targeted price increases had caused guest count to decline by more than 12%; margins had started falling too. It was time for a full reset and a new pricing decision discipline.
12
CONSECUTIVE QUARTERS OF PRICE INCREASE WITHOUT TRAFFIC LOSS SINCE IMPLEMENTATION
DTC · 8 WEEKS (DESIGN) · 24 MONTHS (PARTNER)
Pricing For CLV Growth
Across-the-board price increases on one hand. Overly aggressive promotions on the other. A poorly designed loyalty program in the middle, and shipping fees waived half of the time. The business was growing despite itself.
400bps
INCREMENTAL GROSS MARGIN IN 24 MONTHS
RETAIL · 8 WEEKS
Understanding Price Increase Effectiveness
Sales softened more than expected after a price increase; leadership wanted to understand why before their next pricing move. It turned out that pricing wasn’t the problem.
15%
PRICING VALIDATED WITHOUT BROAD DEMAND EROSION
DTC · 6 WEEKS
Understanding Promo Effectiveness
The business was running 6 campaigns a year around major holidays, without much differentiation. Results were starting to erode as a result. It was time for a more systematic approach to building the campaign calendar.
1%
INCREMENTAL REVENUE AND GROSS MARGIN FROM OPTIMIZED DISCOUNTS
PRIVATE EQUITY · 4 WEEKS
Pricing Power and PE Due Diligence
Two target companies, both in DTC. Two decisions to make. But how to be sure that the businesses will keep growing post-acquisition? It was time to look beyond the top-line numbers and take a deep dive into their pricing power.
1
DECISION NOT TO INVEST DUE TO LACK OF GROWTH POTENTIAL
One of your decisions isn’t here yet.
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