Use case · Competitive response

Competitive response

When a competitor moves, simulate what it does to your customers, then try your answers side by side: match, hold, or answer only where it hurts.

Questions Avir answers

  1. 01A competitor just cut prices 20%. Who do we lose, and how many?
  2. 02Should we match them, hold our price, or answer for one group only?
  3. 03Which of our customers are most exposed to a new entrant?

The situation

A competitor cut its prices 20% for small businesses.

Assumed

Match them everywhere, or lose share.

Simulated

Matching everywhere cost more revenue than the competitor would have taken. Only small businesses were really at risk.

What it points to

Match for small businesses only. Hold everywhere else.

An illustrative example. Your simulations run on your own customers.

Your answers, side by side

Match, hold, or answer where it hurts.

The same customers, the same competitor move, three answers. Revenue over the year against no competitor move.

Option

Match everywhere

−9.8%

Keeps customers, gives away margin on everyone who wasn't leaving.

Option

Hold your price

−6.2%

Small businesses leave; everyone else stays.

Best of the three

Match for small businesses only

−2.1%

Keeps most of those at risk, at a fraction of the cost.

Illustrative.

What the simulation shows

The result, by customer group.

Every scenario comes back as a month-by-month forecast with its range, and the difference for each group of customers.

Scenario

A competitor cuts prices 20% for small businesses

Revenue −6.2% if you do nothing

Revenue over the year, against no competitor move

Small businesses−19%
Mid-size−4%
Enterprise−1%
Self-serve−7%
Illustrative. Your results come from your own customers.

What goes into it

What you need to get started.

Your data

  • Orders, invoices or subscriptions, each with a customer, a date and an amount
  • The competitor's page, watched by Avir, or their price as you know it

The world outside

  • Competitor watch
  • Seasons

Time and cost

  • A forecast in seconds, once your data is connected
  • A scenario with the AI panel in about a minute
  • The cost in AI credits is shown before anything runs

Test a decision on your own customers.