Feb 13, 2023
Armin Kakas is an expert in analytics, having lots of education in statistics, machine learning and A.I. He has an MBA, and he was a former VP of analytics at American Tire Distributors. He is also the founder of Revology Analytics, a revenue growth analytics consulting company.
In this episode, Armin talks about data analytics and its crucial role in pricing and in businesses as a whole.
Why you have to check out today’s podcast:
- Learn the importance of gathering and understanding data both in B2B and B2C setups
- Find out why pricing and price adjustments must be base on data and customer feedback and should never be done internally in a company
- Learn how to communicate and unite insights from both the points of view of business people and statistics people
“There needs to be a much smarter, much surgical way to manage discounts and really reward those customers that have the highest lifetime value or highest volume versus other things.”
– Armin Kakas
Topics Covered:
01:55 – How Armin got into pricing
03:35 – B2B vs B2C: Armin’s experience in applying pricing data analytics, and which one he prefers
05:57 – Armin’s insights on B2C based on data
06:46 – What is promotional effectiveness
07:34 – Products Armin used to promote on Black Fridays when he worked at BestBuy
09:09 – Why CPGs must have a strong understanding of the relationship between price and value
10:19 – Why companies should asses price and value based on customers’ response and not internally
13:08 – How businesspeople and statistics people shall communicate their insights with each other
18:41 – The most common problems Armin find when solving data problems for companies
20:06 – Why companies should have an “algorithm” that tells them how much to buy when a manufacturer offers big discounts
23:18 – Armin’s pricing advice
25:28 – Connect with Armin Kakas
Key Takeaways:
“One of the easiest, quickest insights you can get is by figuring out which are the lowest ROI promotions that are not delivering any value for you or your customers or any of your channel partners, cut them, and reinvest it elsewhere in other growth areas of the company.” – Armin Kakas
“I think that price-value curve tends to change, especially in CPG quite often. And so, doing that more often is really, really beneficial for companies. And doing it in the right way.” – Armin Kakas
“All this unproductive inventory gathering dust in warehouses, clearance price optimization is a huge opportunity. Just really creating some automation and some dynamic methods to clear out the product that is tying up your capital and is actually lowering your productivity as well as your operating profit.” – Armin Kakas
“When you ask the question, “What are some of the other areas that make a huge impact for companies?”, it is really things related to customer analytics, and that has two sides; One is providing insights… and then, the other side is providing actionable insights to the customers themselves.” – Armin Kakas
People / Resources Mentioned:
- Win Keep Grow: How to Price and Package to Accelerate Your Subscription Business – https://www.amazon.com/Win-Keep-Grow-Accelerate-Subscription/dp/1631954784
- Impact Pricing: Your Blueprint for Driving Profits – https://www.amazon.com/Impact-Pricing-Blueprint-Driving-Profits/dp/1599184311
Connect with Armin Kakas:
- LinkedIn: https://www.linkedin.com/in/arminkakas/
- Email: armin@revologyanalytics.com
- Website: https://www.revologyanalytics.com/
Connect with Mark Stiving:
- LinkedIn: https://www.linkedin.com/in/stiving/
- Email: mailto:mark@impactpricing.com