Given that a 1% increase in price can deliver a disproportionate increase in margin, it's critical for businesses to optimise their pricing – particularly in low growth countries where opportunities for revenue and market share expansion are limited. Research shows that by aggregating, overlaying, and analysing various data sets - including sales, market intelligence, competitor information, and more – organisations can effectively optimise pricing and margin. The problem however, is the amount of data analysis required.
As an example, imagine servicing 100,000 different customers with 100,000 different products, and trying to determine (dynamically) a margin-optimised price for each individual customer for each individual product. It’s an impossible task without sophisticated technology, because the analysis must be undertaken during the sales call. Despite the inherent difficulty of this analysis, it’s worth doing because pricing based on specific customer segments (rather than "one-size-fits-all" strategies) can significantly improve margin and financial performance.
Complexica’s Order Management System (OMS) can address this problem by analyzing all your quotes and orders to determine margin-optimised pricing for each individual customer and product (adjusted for volume and geography). Sales staff are then provided with dynamic “price guides” during the quotation process, so they can maximise margin and the odds of winning the business. Our Order Management System (OMS) relies on a variety of elasticity and cross-elasticity algorithms, as well as sophisticated machine learning techniques to understand buying behaviour and pricing, before recommending the right product to the right customer at the right price.
To explore how our sales order management software can help you generate "margin-optimised" quotes and orders within call centres, in-field selling environments, and e-commerce portals, please contact us