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
Financial services are service (economics), economic services tied to finance provided by financial institutions. Financial services encompass a broad range of tertiary sector of the economy, service sector activities, especially as concerns finan ...
industry analysts like Celent and TowerGroup endorse relationship-based pricing to improve profitability.
RBP billing products include ORMB from
Oracle Corporation
Oracle Corporation is an American Multinational corporation, multinational computer technology company headquartered in Austin, Texas. Co-founded in 1977 in Santa Clara, California, by Larry Ellison, who remains executive chairman, Oracle was ...
, miRevenue from
Zafin
Zafin is a banking software enterprise platform company that provides relationship-based pricing to banks and financial institutions.
The company has offices in Canada, USA, UK, Germany, Dubai, Malaysia, South Africa, and India.
History
The c ...
and Product & Pricing Catalog from
Amdocs
Amdocs Limited is a multinational telecommunications technology company headquartered in Chesterfield, Missouri. The company specializes in software and services for communications, media and financial services providers and digital enterprise ...
.
Implementation
In 2013, California-based
Bank of the West
Bank of the West was an American financial institution headquartered in San Francisco, California, United States. It had more than 600 branches and offices in the Midwest and Western United States.
It was founded in 1874 in San Jose, Californi ...
began an RBP project using Zafin Labs software
See also
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Demand-based pricing
Pricing is the Business process, process whereby a business sets and displays the price at which it will sell its products and services and may be part of the business's marketing plan. In setting prices, the business will take into account the ...
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Dynamic pricing
Dynamic pricing, also referred to as surge pricing, demand pricing, or time-based pricing, and variable pricing, is a revenue management pricing strategy in which businesses set flexible prices for products or services based on current market de ...
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Premium pricing
Premium pricing (also called image pricing or prestige pricing) is the practice of keeping the price of one of the products or service artificially high in order to encourage favorable perceptions among buyers, based solely on the price. Premium re ...
or
Price premium Price premium, or relative price, is the percentage by which a product's selling price exceeds (or falls short of) a benchmark price. Marketers need to monitor price premiums as early indicators of competitive pricing strategies. Changes in price pr ...
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Pricing
Pricing is the Business process, process whereby a business sets and displays the price at which it will sell its products and services and may be part of the business's marketing plan. In setting prices, the business will take into account the ...
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Pricing science Pricing science is the application of social and business science methods to the problem of setting prices. Methods include economic modeling, statistics, econometrics, mathematical programming. This discipline had its origins in the developmen ...
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Pricing strategies
A business can use a variety of pricing strategies when selling a product or service. To determine the most effective pricing strategy for a company, senior executives need to first identify the company's pricing position, pricing segment, prici ...
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Time-based pricing
Dynamic pricing, also referred to as surge pricing, demand pricing, or time-based pricing, and variable pricing, is a revenue management pricing strategy in which businesses set flexible prices for products or services based on current market d ...
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Value pricing or
Value-based purchasing
References
Pricing
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