Achieving Pricing Excellence in the Age of Business Transformation
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Effective pricing is one of the most important levers for driving profitable growth. As businesses adapt to increasingly competitive Industry dynamics, pricing excellence will be a key competency for enterprises to master. Hear from experts of bellwether industries on innovative pricing practices that have helped their organizations grow while protecting their margins.
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Achieving Pricing Excellence in the Age of Business Transformation
- 1. #AccelerateQTC Protik Mukhopadhyay / May 4th, 2017 Achieving Pricing Excellence in the Age of Business Transformation
- 3. • Partners have worked full-time in Apttus, PROS and Deloitte • Global company with 6 locations • Focus on High-Tech, Healthcare and Manufacturing verticals • Niche business knowledge on Quote-to-Cash solutions • Hybrid model for competitive pricing About Us 3 Salesforce & Apttus Certified Consultants Employees Quote-to-Cash Implementations 70+150+ 55+
- 4. 1. CPQ Migration Framework to Apttus 2. Standav CPQ Analytics with insights 3. QTC Platform Selection Value Framework 4. Platform upgrade and release management Toolkit 5. Standav’s Agile Methodology for Implementation success Our Proprietary Accelerators For Apttus 4
- 5. Architecture – How To Set It Up 5 CATALOG & GUIDED SELLING CONFIGURATION QUOTING & PRICING APPROVALS Intelligent CPQ CONTRACTS CRM ERP INSIGHTS FROM ANALYTICS PRICE MANAGEMENT & OPTIMIZATION Price Guidance Guidance Floor Typical Stretch
- 6. Vice President Client Solutions & Value Strategy Vishaal Jayaswal
- 7. 72017 Cox Automotive, Inc. Confidential & Proprietary COX AUTOMOTIVE Powering the Wholesale and Retail Ecosystem COMPLETE. CONNECTED. COMMITTED.
- 8. 82017 Cox Automotive, Inc. Confidential & Proprietary Solutioning and Pricing Becomes Extremely Complex Products are Complex → 26 Start-ups, 1,000s of SKUs Customers are Complex → Multi-stage Value Chain (OEM`s, Dealers) Packaging is Complex → Understanding needs and Willingness to pay Pricing is Complex → 5 Flavors of pricing models Deals become Complex → Legacy contracts and deals Value Selling is Complex → Limited data on client value
- 9. 9 Segmentation Value Strategy Value Research Needs-based Packaging Strategy Enterprise Consulting Dynamic Pricing & Deal Making Targeting customers that have similar needs, attitudes, and behavioral characteristics Packaging our products into solutions that solve our client’s most pressing problems Pricing based on market influences in order to maximize value capture Helping our clients excel as their trusted advisors in the industry Strengthening our client relationships & solutions through a deep understanding of their needs
- 10. Senior Manager, Pricing Saaj Shah
- 11. Incentives Vary Within An Organization • Operations – Focused on maximizing capacity utilization • Marketing – Maintaining/Gaining share during product launch cycle • Finance – Maintain/Achieve margins based on historical numbers and annual targets • Sales – Compensation plans aligned with hitting revenue targets Why Have an Independent Pricing Organization 11 Operations Capacity utilization Marketing Share Sales Revenue/Quota Finance Margin % Pricing
- 12. Pricing Decisions Have Become More And More Complex: • Advanced statistical modelling • Dynamic pricing using real-time data • Large data sets (competitive pricing, POS etc.) Unified pricing policy across the organization drives consistency for both internal stakeholders and external customers. Drive Consistency 12
- 13. There are Many Different Models Depending on Your Industry and Your Organizational Structure: • Centralized – Pricing decisions and operations all occur at a centralized level across the organization typically as its own separate vertical • Decentralized – Pricing managed independently within the business units • Hybrid – Centralized corporate office to unify pricing policy with decision rights by product maintained by business units For each of these models, you can setup varying spans of control ranging from sole decision maker to a support role. Organizational Structure 13
- 14. 14 “In the entire Gartner CRM technology landscape, only two technologies are classified as providing “transformational” benefit in the next 2-5 years: Price Optimization + CPQ.”