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
- 01A competitor just cut prices 20%. Who do we lose, and how many?
- 02Should we match them, hold our price, or answer for one group only?
- 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.
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
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