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NEW YORK and LONDON, Jan. 20 (Korea Bizwire) — McKinsey & Company today announced that it has been named a leader in the IDC MarketScape: Worldwide Retail Price Optimization Solutions 2021-2022 Vendor Assessment (Doc # US48393721, December 2021). IDC MarketScape is the IT industry’s premier vendor assessment tool, providing in-depth quantitative and qualitative technology market assessments. McKinsey’s solution evaluated in the report was Periscope by McKinsey, a suite of marketing and sales analytics solutions, including pricing and promotion, that helps companies achieve sustainable revenue growth.
Delivering the right price to the right customer is integral to the retail experience. They are the primary drivers of customer consideration, decision to purchase, and overall brand perception. Therefore, the advantage increasingly goes to retailers that are customer driven and analytically robust. These retailers modernize their approach to pricing, promotion, and markdown decisions in order to optimize financial results and customer satisfaction.
The report makes clear that customer-centric pricing across large product portfolios in a fast-changing competitive environment can be challenging. Companies need a dynamic price-setting solution across all products and channels to set up optimal pricing throughout the entire product life cycle. Periscope by McKinsey gives companies the information they need to implement an effective pricing strategy that ensures healthy financials for the lifetime of their products.
The IDC MarketScape report identifies the following strengths of Periscope by McKinsey:
- End-to-end capability. Periscope provides clients with a full-spectrum solution that combines support from experienced strategy consultants from McKinsey with solution capabilities to deliver strategy, analytics, and tools for long-term customer success.
- Responsiveness to the customer. Periscope’s clients are very confident that the firm understands their current and future needs and is willing to invest appropriately in its solution to support the future needs of retailers.
- Customer satisfaction. Clients are very satisfied with Periscope’s sales/customer service processes and are very likely to recommend the firm to other colleagues in the industry.
Along with McKinsey’s professional services, Periscope’s clients get a comprehensive pricing solution that includes strategy, process, technology, change management, and training, all of which are highly tailored to the company and its goals while staying on an ongoing upgrade road map, according to the IDC MarketScape assessment.
Jon Duke, Research Vice President, Retail Insights at IDC and author of the report, said, “In today’s retail environment, where consumers are faced with a massive array of choice, getting pricing wrong carries significant risk of eroding margins, customer satisfaction, and brand loyalty. Moreover, the past year has driven dramatic growth in e-commerce and omnichannel retail, which makes pricing more transparent and easier for consumers to price shop simultaneously across multiple retailers. Combined with a pandemic-induced slowdown in consumer spending and growing concerns around rising inflation, it makes it even more important to get pricing right.”
Zachary John, a Periscope leader at McKinsey & Company, said, “With unprecedented acceleration of digital adoption and growth in omnichannel retail, brand loyalty remains more elusive than ever. Now more than ever, today’s consumers have more choices and instant access to information to price shop across multiple retailers. That’s why the impact of pricing and promotions is just as important to the overall strategy as it is for growth—and it requires a rethink of pricing strategies to protect margins and drive rapid revenue growth.
“That’s why we are uncompromising when it comes to delivering pricing intelligence,” added John. “By fusing big data with advanced analytics and merchant bank design, value can be created. It’s the power to accurately identify buying signals, realize margin gains, and sync with game-changing opportunities that drive sustainable growth. We’re pleased to be recognized by IDC MarketScape for our robust pricing solutions in both B2B and B2C.”
Access an excerpt of the IDC MarketScape: Worldwide Retail Price Optimization Solutions 2021-2022 Vendor Assessment here.
In addition, you can access an excerpt of the IDC MarketScape: Worldwide B2B Price Optimization and Management Applications 2021 Vendor Assessment (IDC #US46742021, September 2021).
For more information, please contact
US: MaryLiz Ghanem, Digennaro Communications – McKinsey-DiGennaro@digennaro-usa.com / +1 917 518 8422
UK: Ruth Jones / Becca Ross, 3THINKRS – mckinsey@3thinkrs.com / +44 0208 0872843
About IDC MarketScape
IDC MarketScape vendor assessment model is designed to provide an overview of the competitive fitness of information and communications technology (ICT) suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each vendor’s position within a given market. IDC MarketScape provides a clear framework in which the product and service offerings, capabilities and strategies, and current and future market success factors of IT and telecommunications vendors can be meaningfully compared. The framework also provides technology buyers with a 360-degree assessment of the strengths and weaknesses of current and prospective vendors.
About Periscope® by McKinsey
Founded in 2007 and now a part of the McKinsey Marketing & Sales Practice, the Periscope® by McKinsey platform combines world-leading intellectual property, prescriptive analytics, and cloud-based tools with expert support and training. It’s a unique combination that drives revenue growth, both now and into the future. The platform offers a suite of marketing & sales solutions that accelerate and sustain commercial transformation for businesses. Periscope leverages its world-leading IP (largely from McKinsey but also other partners) and best-in-class technology to enable transparency into big data, create actionable insights and new ways of working that drive lasting performance improvement, and typically sustain a 2 to 7 percent increase in return on sales. With a truly global reach, the portfolio of solutions comprises Insight Solutions, Marketing Solutions, Customer Experience Solutions, Category Solutions, Pricing Solutions, Performance Solutions, and Sales Solutions. These are complemented by ongoing client service and custom capability-building programs.
To learn more about how Periscope’s solutions and experts are helping businesses continually drive better performance, visit www.mckinsey.com/periscope.
About Marketing & Sales, McKinsey & Company
The mission of the McKinsey Marketing & Sales Practice is to help leaders of both consumer and business-to-business clients create Growth that Matters through meaningful transformations and marketing-driven profit. The practice helps its clients set their strategic direction, develop their marketing and sales capabilities, and connect their organization to realize the full potential of today’s omnichannel opportunities. Clients benefit from McKinsey’s experience in core areas of marketing such as branding, customer insights, marketing ROI, digital marketing, CLM pricing, and sales and channel management.
Source: McKinsey & Company via GLOBE NEWSWIRE
