Price optimization - seize your revenue potential
Frost & Sullivan and Stratecast analysts have uncovered a unique and cost-effective way to manage pricing strategies in real time, taking the guesswork out of pricing and effectively increasing revenue. Here’s a price optimization solution which reveals revenue maximizing price points and enables salespeople to test the probability of a deal closing at different prices - invaluable information to support their decision-making.
Published on: Mar 4, 2016
Transcripts - Price optimization - seize your revenue potential
Seize Your Revenue Potential Rufus Connell “We Accelerate Growth”
Stratecast | Frost & Sullivan Hi, I’m Rufus Connell, vice president, Information & Communications Technology, with Frost & Sullivan. It’s a pain point felt by nearly every organization—PRICING. Stratecast and Frost & Sullivan have uncovered a unique way to manage pricing strategies in real time, taking the guesswork out of pricing and effectively saving your profits. Pricing in the real world has always held the challenge of making sure you price intelligently and accurately enough to show an end-of-year profit. You have to make sure you do not price too high and find yourself out of the market or too low and miss the opportunity for more revenue. Price optimization can help you get away from cost-plus and competitor-driven “me-too” pricing. Your company needs optimized pricing based on the best available analytics, all while asking a fair price for goods and services, aligned with their perceived value. Providing this to your customers will allow you to preserve brand equity without sacrificing revenue through low prices or excessive discounts. Here is how it works: A. Your organization will get the chance to populate a price optimization system with price book information and figures on deals that have closed, for example, with invoice data. Mathematical algorithms analyze past sales associated with each price book to determine where the optimum, revenue-maximizing price point is for each product or service. B. The system calculates the optimal pricing based on varying customer segments, such as selling into retail versus wholesale channels. It allows the implementation of multiple pricing strategies by area, country, currency or other criteria you can set. C. Although price optimization automates the pricing processes, it is not about “set it and forget it.” It automatically and dynamically readjusts optimal prices to meet changing market conditions, reflected on the latest sales figures. This helps companies immediately align their pricing with shifting or emerging purchasing trends and customer behavior. One company that stands out as a provider of price optimization solutions is OneTree Solutions. Its PriceLenz does everything I just mentioned, but there were four specific things that stood out to us. 1. PriceLenz is available in the cloud as an IBM SmartCloud Enterprise solution. Most small-to-medium-sized businesses could not even consider a BI solution due to the cost. It is the same here: the mid-market cannot afford a price optimization tool because most of them cost several hundred thousand dollars and more. The company makes price optimization cost-effective for companies of any size while still providing high-end functionality. 2. It’s extremely intuitive and easy to use. You don’t have to be a data scientist to use PriceLenz. Beyond calculating the optimal price, PriceLenz provides the probability of making a successful sale for any price a salesperson might want to offer which is invaluable information to support salespeople in their decision-making.© 2012 Stratecast | Frost & Sullivan Page 2
Stratecast | Frost & Sullivan 3. It’s portable. PriceLenz runs on your desktop or laptop browser, but it also runs on the iPhone. This may not feel earth-shaking because we now see portable devices everywhere, but this is portable ANALYTICS. This is a major benefit in selling situations where sales can test the probability of a deal closing at different price points, either before the sales call or discreetly, right at the meeting table. 4. For large enterprises requiring PriceLenz to run in their own datacenter, they can opt for the “Ready for PureSystems” edition of PriceLenz. PureSystems is IBM’s latest and most advanced private cloud offering, which integrates hardware, software and expertise while providing huge cost savings for deployment and maintenance of enterprise solutions. Deployment time is only eight minutes! Pricing can finally be an opportunity for businesses of any size. An onslaught of data, the harsh global economy and customized pricing offered by your sales force should not leave any business in the dark when it comes to smart solutions. Our research here at Stratecast and Frost & Sullivan has shown PriceLenz offers companies of any size the solution they need to boost revenue quickly without the pitfalls that plague other companies. For more information on how price optimization can change your top line, we invite you to visit the links below. Frost.com PriceLenz.com About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies? Contact Us: Start the DiscussionCONTACT US 877.GoFrost (877.463.7678) • firstname.lastname@example.org • www.frost.com