Relationship-based pricing: Difference between revisions

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Relationship-based pricing (RBP) is a pricing and billing framework in the banking industry where pricing is determined based on a customer's overall purchases and circumstances, rather than being delivered on a product-by-product basis. With RBP, banks use customer-based parameters, such as the level of overall business the customer does with a bank or the types of services purchased, to determine pricing.

Financial services industry analysts like Celent and TowerGroup endorse relationship-based pricing to improve profitability.^[1]

RBP billing products include ORMB from Oracle Corporation, miRevenue from Zafin and Product & Pricing Catalog from Amdocs.^[2]

Implementation

In 2013, California-based Bank of the West began an RBP project using Zafin Labs software^[3]

References

^ "TOWERGROUP: WHOLESALE BANKERS SHOULD EXPLORE "RELATIONSHIP-BASED PRICING" TO IMPROVE PROFITABILITY". TowerGroup. 2011-07-17. Archived from the original on 2011-07-17. Retrieved 2023-02-25.
^ "Amdocs Product & Pricing Catalog for Banks". Amdocs. Retrieved 2023-04-17.
^ "Bank of the West's CIO Is on a Quest for Real-Time Analytics". American Banker. 2013-09-30. Retrieved 2015-06-24.

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[1] "TOWERGROUP: WHOLESALE BANKERS SHOULD EXPLORE "RELATIONSHIP-BASED PRICING" TO IMPROVE PROFITABILITY". TowerGroup. 2011-07-17. Archived from the original on 2011-07-17. Retrieved 2023-02-25.

[2] "Amdocs Product & Pricing Catalog for Banks". Amdocs. Retrieved 2023-04-17.

[3] "Bank of the West's CIO Is on a Quest for Real-Time Analytics". American Banker. 2013-09-30. Retrieved 2015-06-24.

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-{{unreferenced|date=March 2007}}
+{{More refs|date=April 2023}}
-'''Relationship Based Pricing''' ('''RBP''') is a new concept that is emerging in the banking industry.  RBP is essentially a pricing and billing framework that helps banks cut through their product silos and enable customer centric pricing. Currently, due to limitations of existing systems most banks are forced to price their offerings based strictly on product usage parameters.  RBP enables the bank to use customer centric parameters such as the level of overall business the customer does with a bank or the types of services he/she buys to determine pricing.
+'''Relationship-based pricing''' (RBP) is a pricing and billing framework in the banking industry where pricing is determined based on a customer's overall purchases and circumstances, rather than being delivered on a product-by-product basis. With RBP, banks use customer-based parameters, such as the level of overall business the customer does with a bank or the types of services purchased, to determine pricing.
+[[Financial services]] industry analysts like Celent and TowerGroup endorse relationship-based pricing to improve profitability.<ref>{{Cite web |date=2011-07-17 |title=TOWERGROUP: WHOLESALE BANKERS SHOULD EXPLORE "RELATIONSHIP-BASED PRICING" TO IMPROVE PROFITABILITY |url=http://www.towergroup.com/research/news/news.htm?newsId=4440 |archive-url=https://web.archive.org/web/20110717080427/http://www.towergroup.com/research/news/news.htm?newsId=4440 |archive-date=2011-07-17 |access-date=2023-02-25 |website=TowerGroup}}</ref>
-With RBP, new product bundles and prices can be easily configured and deployed.  The key hallmarks of RBP are pricing freedom from product centric constraints and flexibility to include cross-product and customer specific parameters for pricing.  It enables banks to pursue innovative and new approaches to manage customer relationships and improve the profitability of their businesses. It also enables banks to reward clients for their loyalty through specific pricing and rewards programs. RBP is also an automation framework that enables banks to eliminate some of their manual operations and thereby avoid revenue leakage due to human errors.
+RBP billing products include ORMB from [[Oracle Corporation]], miRevenue from [[Zafin]] and Product & Pricing Catalog from [[Amdocs]].<ref>{{Cite web |title=Amdocs Product & Pricing Catalog for Banks |url=https://www.amdocs.com/products-services/product-pricing-catalog |access-date=2023-04-17 |website=Amdocs |language=en}}</ref>
-Financial services industry analyst firm ''Celent'' recently published a [http://www.celent.com/PressReleases/20061023/RelPricingVendors.htm report], comparing the vendors in Relationship Based Pricing technology.
+== Implementation ==
+{{Update|part=section|date=February 2023}}
+In 2013, California-based [[Bank of the West]] began an RBP project using Zafin Labs software<ref>{{cite web |date=2013-09-30 |title=Bank of the West's CIO Is on a Quest for Real-Time Analytics |url=http://www.americanbanker.com/issues/178_189/bank-of-the-wests-cio-is-on-a-quest-for-real-time-analytics-1062492-1.html |accessdate=2015-06-24 |publisher=American Banker}}</ref>
 ==See also==
-*[[SunTec]]
+*[[Demand-based pricing]]
+*[[Dynamic pricing]]
+*[[Premium pricing]] or [[Price premium]]
+*[[Pricing]]
+*[[Pricing science]]
+*[[Pricing strategies]]
+*[[Time-based pricing]]
+*[[Value pricing]] or [[Value-based purchasing]]
+==References==
+{{Reflist}}
+{{DEFAULTSORT:Relationship Based Pricing}}
+[[Category:Pricing]]
 {{Econ-stub}}