Why is Profit-Based Pricing a Better Approach?

Innovative banks are adopting a Profit-based Pricing approach to increase profits, obtain valuable customer insight, and gain a competitive advantage. They have implemented Profit-based Pricing solutions in 16 weeks, realized 10-20% profit improvements, and have achieved a 10X return on investment (ROI) within a year of use.

Nomis Solutions developed the Nomis Price Optimizer™ for Deposits specifically for the unique needs of the Deposits and CD market. By moving from a market-based approach to a Profit-based Pricing approach, Nomis Price Optimizer for Deposits and CDs helps you maximize profits, while maintaining market share and revenues. It makes strategic use of customer data to optimize pricing by product and customer segment. The solution provides an understanding of how specific customer segments value your various financial products and the optimal rate and price that should be offered.

The Nomis Price Optimizer for Deposits and CDs allows you to answer questions such as:

• What is the best rate for every customer segment and channel to maximize financial results while hitting
  volume targets?
• What rate should I set to meet my volume, profitability, and loss rate targets for the year?
• How will each segment respond to changes in my rates?
• What factors affect price sensitivity?
• How do competitor prices affect my volumes and profits?

The Nomis Price Optimizer for Deposits enables you to:

• Better Tailor Prices and Maximize Profitability: Leveraging lost quote data, the solution provides a better understanding of customer price sensitivity. By incorporating business goals, the solution increases profits while maintaining volume and credit quality.
• Enhance Customer Loyalty and Boost Lifetime Profitability: Taking multi-product information into account enables a full relationship view when determining price recommendations. Managing the impact of price-driven attrition ensures that profit improvements are sustainable over time.
• Better Track and Control Pricing Decisions: Providing an integrated view of the entire pricing process provides the ability to monitor performance, analyze gaps and opportunities for improvement, and learn how the market responds to new rates. Having a record of all pricing decisions and the factors that influenced price enables you to better meet regulatory requirements.