Quantitative Tools for Solving Critical Business Problems
The past few decades have seen a quiet revolution in the development of quantitative business tools. No longer the province of back-office operations, new techniques have emerged for solving million and even billion-dollar problems.
StatWizards evolved to help bridge the gap between critical business problems and new quantitative solutions. Our Discrete-Choice Wizards, the first of a continually expanding line of tools, are designed to address the following problems:
- How much should I charge for my product in order to maximize revenues or profits?
- How should pricing change to meet differing competitive situations?
- What features should my product contain?
- How much are customers willing to pay for specific features?
- What adoption rate should I expect for a new product?
- Do different market segments expect different things from my products?
- What is the appropriate segmentation to use?
For most business people, the end product of a DCM analysis--indeed the most valuable part--is the market simulator in Excel. This software allows managers to examine how prospective or repositioned products would fare in a competitive market. Managers can describe the marketplace in some detail, changing products features, form factors, advertising messages and other elements of the marketing mix, depending on how the underlying study is designed. The example below illustrates a StatWizards simulator built in Microsoft Excel®.
Users enter assumptions about competitive products and the target population. The simulator projects potential market share, sales and revenues. Specific market segments can be isolated to examine differences in feature preference, purchase rates and price sensitivity. In the hands of a skilled product manager, this is a powerful tool.
Based on Fader-Hardie forecasting models, our latest product line extension simultaneously produces forecasts at both the individual and aggregate level. The Forecast Wizard supports a wide range of applications, including:
- Calculating individual customer value (video)
- Identifying customer segments
- Projecting customer retention
- Anticipating when customers will attend events, such as cruises or concerts (video)
- Forecasting contract renewal rates
- Predicting new product trial
- Tuning marketing campaigns
- Predicting online behavior
For an animated view of how the Forecast Wizard works, click here to view our Forecast Wizard Demo.
If you use Statistical Innovations' Latent GOLD® program to identify market segments, this Wizard is for you. It reads the output from a Latent GOLD® Format Wizard run into Excel then applies charts and formatting to help you characterize segments and explain results to managers. For more information, visit the Format Wizard's product information page.
You can also find videos and tutorials for all these products in our learning library.