In an increasingly complex and competitive marketplace, B2B companies are constantly looking for ways to optimize their pricing strategies and maximize profitability.
This has led to the widespread adoption of price management software, which promises to streamline pricing processes and improve decision-making. However, we’ve heard a range of concerns from B2B businesses about whether they are truly getting enough value from their price management software investments. So, let’s tackle this topic today:
We've compiled three key recommendations on how to maximize the value from your pricing software.
1. Align software with business objectives
Many organizations make the mistake of choosing software solely based on its features and functionalities without considering whether it truly meets their unique needs. Don’t fall into this trap.
Instead, conduct a comprehensive assessment of the software's capabilities and determine if it aligns with your company's pricing goals, business rules, and governance. Even if this is given, you will need to further customize the software to make it a perfect fit to your company’s pricing strategy, e.g., by customizing the required product hierarchy, customer segmentation, or pricing rules. By aligning the software with your organization's strategic objectives, you can maximize the value you derive from your price management software.
2. Invest in people, training, and change management
Implementing price management software is not a one-time exercise.
Instead, we recommend installing a dedicated pricing team, ongoing training, and change management efforts to ensure your software is utilized effectively. It’s also worthwhile investing in comprehensive training programs to educate employees on the functionalities and benefits of the software. This will empower them to make informed pricing decisions and leverage the software's full potential.
Meanwhile, change management initiatives can do a great job of addressing any resistance to the adoption of the software and fostering a culture that embraces data-driven pricing practices. This way, you can enhance the value obtained from your price management software.
3. Leverage data analytics and integration
Pricing software possesses exceptional capabilities in terms of advanced analytics and simulations right out of the box. It offers a wide range of report options and allows for easy customization to cater to specific needs. What’s more, the software can seamlessly integrate with CRM and ERP systems, enabling even more sophisticated analytics and making it easier to disseminate results throughout the entire organization.
However, we often see that many of our B2B clients find themselves overwhelmed by the sheer volume of information provided. In the absence of clear rules and guidance, the advanced analytics can inadvertently pose a threat, as it becomes easy to lose sight of the bigger picture.
To address this, make sure you allocate sufficient time to establish the KPIs you wish to monitor/analyze, identify the reports you need to generate, and determine the target audience for these reports. It’s also essential to embed the analytics within a process that ensures the analysis results can genuinely enhance decision-making. For instance, feeding the findings back into the development of new pricing strategies can be highly valuable.
Get more value from your software investments
The key takeaway? Yes, price management software has the potential to boost pricing effectiveness and efficiencies in your business. It can help you to make more informed pricing decisions, improve profitability, and gain a competitive edge in the dynamic B2B marketplace. You just need to know how to maximize its value.
Want to know more? Our Simon-Kucher Engine experts discuss how to avoid the most common pitfalls when launching pricing software.