Data XL allows companies to set-up the best price.
Price will be no longer based on cost, but on customers' perceived value or on market rules.
This premium price either reduces customer churn, optimizes customer price preferences (~market share), maximizes the margin and much more.
We use behaviour data and experimental design to predict value, not to reduce cost.
Data XL has developed an algorithm with an experimental design that can capture competitor pricing, enabling Data XL clients to offer MARKET-BASED PRICING. Note that:
Data XL uses a GLM model to predict the willingness to pay (VALUE-BASED PRICING) with a ‘secret sauce’. Customer willingness to pay is measured using the same risk factors that all insurers use and the market price (a plus).
Data XL's ‘secret sauce’ is the sample data: Big data or observational data cannot accurately measure true willingness to pay. The experimental design yields causality (true willingness to pay). This experimental data collected via backtesting and live experiments.
Data XL uses all the data mentioned to optimise the price (margin, share or retention). Data XL’s unique approach bears in mind competitor pricing and the customer’s individual characteristics (the same basis as the risk approach). Therefore, it is more comprehensive and precise than its competitors.
Data XL platform has the following modules:
Cost base pricing /actuarial pricing:
Value Based Pricing:
Our mathematical algorithm is more comprehensive than others on the market. In fact we are the only ones that combine risk cost, competitors' view and willingness to pay.
Futhermore, while our competitors opt to sell a software platform not a solution, they do not isolate the price from other marketing mix elements. Therefore, their solution is based only on (lowering) the price.
Check out this great video that we used on F10 DEMO DAY in Zurich
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