PPT Slide: Customer Elasticity Analysis: New Business vs. Renewal

Customer Elasticity Analysis: New Business vs. Renewal PPT

This PPT slide, part of the 56-slide Strategic Pricing Framework and Tactics PowerPoint presentation, presents a comparative analysis of elasticity distributions for new business versus renewal scenarios. It features 2 cumulative distribution graphs, one for each category, illustrating how customer elasticity varies. The y-axis represents elasticity percentage, while the x-axis indicates the cumulative distribution.

In the new business section, around 30% of customers exhibit elasticity below two-thirds of the average, indicating a significant portion of the customer base is less sensitive to price changes. Conversely, only about 15% of customers show elasticity around two-thirds of the average. This suggests that the majority of new customers may be less responsive to pricing strategies, which could inform pricing decisions and marketing approaches.

On the renewal side, the trends appear somewhat similar. Again, approximately 30% of customers have elasticity below two-thirds of average. The data indicates that a smaller segment, around 15%, has elasticity close to two-thirds of the average. This consistency across both new business and renewal scenarios highlights a potential pattern in customer behavior regarding price sensitivity.

Understanding these elasticity distributions is crucial for strategic pricing decisions. It allows businesses to tailor their pricing strategies based on customer segments, potentially optimizing revenue. The insights derived from this analysis can help in crafting targeted offers and adjusting pricing models to better align with customer expectations and behaviors. This slide serves as a valuable resource for executives looking to refine their pricing strategies based on empirical data.

This slide is part of the Strategic Pricing Framework and Tactics PowerPoint presentation.

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