Driving effective cross-functional interlocks is a best practice for B2B organizations looking to accelerate revenue growth. However, one interlock that often gets overlooked in go-to-market transformations is the relationship between Sales and Pricing. Too often, Sales views Pricing as a roadblock to closing that critical deal. Finance cringes thinking about the margins lost with the end of quarter discounts given out by Sales.
Unsure if your pricing solution is driving the impact on margins you were hoping for? We will outline five core benefits a best-in-class solution will deliver, as well as a Checklist to determine if it’s time for an upgrade.
Not Having the Right Solution Can Have a Massive Financial Impact
In a benchmarking study conducted by Zilliant, enterprise organizations may forfeit up to 30% in revenue and 13% in profit margin resulting from lost customer churn, lost cross-sell opportunities, and inconsistent pricing practices.
Organizations have turned to Price Optimization solutions to help solve this conflict. Unfortunately, Finance leaders select the wrong vendor due to overlooking one critical area while going through their selection process. Does the vendor have the right level of Sales expertise?
Selecting the right vendor can be the difference between your Price Optimization solution driving change, or just becoming another “tool” thrown at a problem. There are many vendors out there. How do you make sure you are selecting the right one? Here are five key benefits in addition to better margins that can be realized by selecting the right provider.
5 Benefits of Selecting a Price Optimization Vendor with the Right Level of Sales Expertise
- Optimize Your Sales Force: Sales leaning too heavily on discounting, particularly at the end of quarters is a pain that Finance leaders consistently battle. A Sales org’s “A Players” are more likely to sell on value, but what about the “B and C Players”? Providing a solution that enables the rest of the organization to optimize the price of each deal they sell can have a massive impact on an organization’s bottom line.
- Reduce Conflict Between Pricing and Sales: Sales dreads the idea of Finance getting involved internally in their deals. Their perception is that the price point they need to get the deal done will get rejected, lose the opportunity to a competitor, and miss their number. The right solution can help change this narrative. Price management technology leverages customer and market data to drive towards an optimized price. Giving Sales visibility into “how” prices are determined will help rebuild this relationship, and strengthen the interlock.
- Eliminate Technology Integration Issues: Older pricing solutions present integration challenges with third-party and back-office systems. Ensure that the solution you are selecting will lead to a more streamlined process in reaching a final price.
- Increase the Customer Experience: One of the biggest challenges raised by Sales around receiving final pricing is the time it takes to turnaround, and ultimately deliver to the customer. Without the right solution, this can lead to weeks of lag time, which will likely lead to lost deals and Revenue. Select a vendor that has testimonials and case studies that prove their ability to reduce this bottleneck.
- Lack of Trust: Without the right level of discounting governance, margins suffer. Finance having too much control over what the Sales price is leaves reps guarded. The result is a lack of trust between these two functions. The right solution will help strike a balance and lead to profitable closed deals.
How do you get started ensuring your Pricing solution is delivering the right impact on your organization? SBI has given you a head start by providing a tool to leverage when evaluating your current or future pricing software vendors. This Pricing Vendor Checklist can be leveraged to determine if it’s time to begin evaluating alternative solutions.
Need a Pricing Strategy overhaul? Schedule a working session at SBI’s Studio with our Pricing Subject Matter Experts.
As a guest of The Studio, you’ll get unlimited access to our handpicked experts to help you with your Pricing Strategy challenges. Together we’ll focus on developing an action plan to ensure you find the proper balance between hitting your corporate financial objectives without handicapping your sales organization. The best part is by coming to the Studio and working with our SME’s. We will allow you to stay focused on working on the business, getting a month of work done in just eight hours. It’s an amplified experience that you can only get in one place: The Studio. I hope you join us.