Traditional Pricing Analysis Methods Are Too Slow
Traditional pricing teams analyze historical data to form pricing recommendations. This process, limited by human speed and communication capabilities, often delays actionable insights.
Now imagine:
- Real-time evaluation of transaction data against historical buyer behavior and demographics.
- More free time for your top analysts to focus on qualitative intersections with company strategy.
- Data visualized via standard reports and dashboards for rapid decision-making and implementation.
This isn’t hypothetical – it’s the reality with AI/machine-learning-enabled optimization tools and data visualization. Enterprises are quickly realizing pricing gains that significantly impact their bottom line.
RELATED READING: Highest Rated Pricing Optimization Software for 2023-2024
By leveraging AI/Machine Learning for Pricing Insights, you get more up-to-date data delivered faster while allowing your top analysts to focus on company strategy.
AI/Machine Learning: A Game-Changer for Price Optimization
AI and Machine Learning in Manufacturing revolutionize how we understand and predict pricing dynamics. These technologies can:
- Identify key price drivers among various variables.
- Provide pricing guidance (Floor, Stretch, Target) for sales teams.
- Model demand impact of price changes.
- Analyze customer price sensitivity using transactional history.
- Create optimized bundled pricing offerings.
- Employ algorithms to meet specific objectives (revenue, margin, customer acquisition).
These tools enable rapid, informed decisions, propelling price data analysis and midmarket price optimization strategies forward.
RELATED READING: Top 7 Machine Learning Use Cases in Manufacturing
Double-Digit Growth and Market Adoption
The demand for Price Optimization and Management has seen consistent double-digit growth since 2017. Today, SaaS vendors have made these tools more accessible than ever. Integration with leading CRM tools and bundling with CPQ and Contract Lifecycle Management suites has reduced investment needs.
Leveraging Benefits of Price Optimization
Organizations are harnessing sophisticated pricing tools for substantial impacts:
- Revenue increases between 1% and 5%
- Margin increases between 2% and 10%
- Operational benefits: higher sales conversion rates, automated approvals, and shorter sales cycles.
5 Key Lessons for Implementing AI-Driven Price Optimization:
- Data Quality: Essential for significant results. Expect longer implementation for data cleansing.
- Internal Alignment: Pricing Optimization works best when aligned with overall pricing strategy and incentives.
- Software Selection: Take time to compare functionalities and vendors. Expect a 4-12 week duration for software selection.
- Integration: Bundling with CPQ offerings often results in savings. Ensure standalone solutions integrate smoothly with existing CPQ and CRM software.
- Resource Blend: Optimal integrations combine in-house resources, technical staff, and strategic partners.
Fisher Management Partners: Your Partner in Digital Transformation
At Fisher, we specialize in guiding large and midmarket businesses through critical initiatives like AI for price optimization. Whether you’re looking at executing new corporate transformation strategies or expanding rapidly through M&A, Fisher is equipped to partner with you for success.
Contact Us for Price Optimization and Management Tools Analysis
Ben Minister
While at Cardinal Health, Ben sat in the chairs of our clients and understands the multi-directional pressure applied to business leaders: hit your numbers, lead a team, run the business, and change for the future. He led large teams and successfully improved each one because he knows the secret to fast, effective, and lasting change – people. With Ben you will get a proven leader who prides himself in delivering results and creating a positive culture around him. Ben’s clients always feel he is part of their team.
With 15 years of business experience, relying heavily on his Lean Six Sigma background, Ben led large-scale warehouse and back-office continuous improvement deployments, turned around dysfunctional operations and cultures, completed pricing and salesforce.com technology implementations and led strategic initiatives at large corporations. Our clients hire us because they seek transformation; Ben achieves this by unwavering focus on your business goal and engaging your people. You can reach Ben at ben.minister@fishermp.com.