To succeed in an increasingly competitive global market, businesses must put their customers’ needs at the heart of everything they do, create commercial visibility so customers can understand the details of their business offers, and seamlessly execute a new commercial strategy.
Oliver Wyman brings a unique set of strategic, analytical, and change management capabilities to the toughest commercial problems. We focus on cracking the core issues, ensuring that our recommendations deliver tangible impact, and sustaining the benefits with clients through ways of working or with enterprise-grade software tools from Oliver Wyman Labs.
Price is a powerful commercial lever: Small changes have a significant impact on the bottom line – for better or for worse. At the same time, promotions often introduce management complexity and fail to deliver the planned incremental profit.
We work with clients across a range of consumer sectors to address a broad spectrum of pricing topics, including the price repositioning of a business line or category, product and service pricing, price image, promotional effectiveness, net price and rebates, core and ancillary product pricing, price list, and target setting.
In B2B environments, we have helped deliver step-change profit improvements in large-scale contract pricing as well as pricing and contract management for small and medium-sized businesses.
Our typical pricing engagements have yielded one to three percentage points of margin improvement for high-volume lower-profitability industries, and significantly more in higher-profitability industries.
Capacity-constrained industries, with high fixed costs and low marginal costs, require different techniques to maximize the value from their products and services. Should, for example, an airline discount the seat today or hope for a higher price tomorrow? Revenue or yield management uses analysis of demand and price sensitivity for different market segments to make optimal pricing decisions.
Oliver Wyman works with a range of clients, including leading airlines, hotel operators, and car hire firms, to strengthen their revenue management capabilities and improve bottom-line margins.
Manufacturers of long-life assets, such as cars and planes, are increasingly reliant on aftermarket products and services as a source of profit.
We work with original equipment manufacturers (OEMs) to develop aftermarket strategies, predict demand for parts, and optimally price spare parts and aftermarket services – something that is made more complex by long intervals between purchases.
Customer-centric business models rely on products being tailored to the needs of target segments, but not overly tailored to drive unnecessary complexity. It’s a fine balancing act.
Oliver Wyman helps develop breakthrough products and propositions. This work can include new products, new bundles of existing products, or ancillary products and services that complement a core offer.
The demands on today’s sales functions are significant – with pressure to drive growth, reduce cost-to-serve, manage complex multichannel dynamics, and deliver value from new digital technologies.
Our holistic approach helps clients to implement a step change in sales effectiveness. Whether it is defining a focused customer strategy, developing the target channel mix, streamlining the sales organization structure, improving the efficiency of sales processes, or designing the right targets, measurements, and sales incentives – we work directly alongside clients to design and realize the changes.
Our team brings significant experience from a wide range of sales models, including B2B and B2B2C key account management, B2C contact centers, and B2C retail store sales. Improvements in sales of 5 to 15 percent, depending on the industry and client starting point, are typical from our projects.
Attracting new customers and managing long-term customer relationships are effective routes to profitable growth. However, today’s customers have more choice and access to information than ever before, which continually raises the bar to capture and retain their business. They are also ready to share their experiences, positive or negative, through social media.
We work with clients to increase their profitability. By designing attractive offer packages and incentives, we help them attract new customers; by offering incremental value to existing customers, we help minimize churn. Projects have ranged from the design of new offers and improvements in the management of customer contract cycles in mobile telecommunications to the design of dedicated loyalty schemes in the aviation, leisure, hospitality, retail, and banking sectors.
In each case, we use deep customer insights to define the opportunities and crack the complex economics of customer behavior. Then we work directly alongside our clients to implement the changes.
Effective marketing campaigns drive revenue, profit, and brand value. But the marketing landscape is increasingly complex, with rapidly evolving customer needs and more fragmented interactions across marketing channels. Digital competencies are now essential to win but are risky to outsource. Businesses need new strategies to reach their target audiences.
Oliver Wyman’s unique approach combines econometric analysis with scientific experimentation. This allows marketers to better communicate with their customers – and substantially increase the efficiency of their marketing spend – whether mass media, digital media, direct mail, retail partnerships, discounts and subsidies, or any other marketing investments.
Our Marketing Value Engineering platform generally helps clients to realize gross profit improvements of 5 to 10 percent through higher revenues or marketing efficiency improvements (or both).
Learn more about our Marketing service offering here.
For many decades, innovation has focused on the product. Now companies are finding it increasingly difficult to deliver returns on their investments in product innovation.
So how does an organization drive differentiation and growth today? One answer is through the customer experience. This experience is progressively more relevant as basic products and services are commoditized and businesses look for additional ways to differentiate.
Together with our sister company, Lippincott, we help create innovations that improve the way a customer feels when using the product or service. Once the desired experience has been designed across all touch points, we support clients to bring the new customer processes and enabling technology into operation.