Gartner recently released its 2022 Market Guide for B2B Price Optimization and Management (PO&M) Software. Vendavo’s VP of Product Marketing and Profit Evangelist, Mitchell D Lee highlights three key takeaways about what you can learn from the report.
Change is the only certainty and volatility is inevitable. Between inflation, a looming recession, supply chain issues, and global crises, it’s more important than ever to monitor, manage, and improve your organization’s financial health. While every organization wants to improve its financial situation, few realize the impacts that pulling the pricing lever could have on their bottom line.
The truth about rapidly changing market dynamics is that your organization simply won’t survive without pricing agility. Successful price optimization relies on crystal clear data and empowers you to offer your products to the right customers at the right prices. Optimal price points will deliver the best possible profits for your company – which will be key when facing continued uncertainty to come.
Leveraging a price optimization and management solution to execute your strategy yields a number of benefits including:
- Maximized sales, margins and profits
- Improved ROI
- Faster, more agile reactions to market changes
- Deeper insights into customer behavior
While it’s true that experienced pricers can work their magic navigating spreadsheets, custom dashboards, and manual reports, there is a much simpler, more reliable way.
To eliminate the need for complex spreadsheets and error-prone, manual processes that simply don’t scale, many companies are turning to price optimization solutions like Vendavo.
Gartner estimates that at least 10,000 B2B companies globally might benefit from a PO&M deployment. Gartner estimates that about 1,800 companies had deployed PO&M software at the end of 2020, with an average annual spend of about $300,000.”2022 Gartner® Market Guide for B2B Price Optimization and Management Software
Gartner recently released its 2022 Market Guide for B2B Price Optimization and Management (PO&M) Software. Here are three key points we want to drive home about the report:
1. No vendor can do it all
Gartner includes 14 other Representative Vendors in their 2022 Market Guide for B2B Price Optimization and Management (PO&M) Software – and that is not an exhaustive list of the solutions available to you. Finding the right solution for your organization’s unique needs and goals is imperative. Cost is important, but certainly not the only factor necessary for strategic success. Remember that good pricing is useless unless put into play at the right place and the right time – it needs to be provided to your customer regardless of which channel they use to buy from you. A good place to start would be to take some advice from Vendavo’s SVP of Global Business Consulting, Robert Irwin by reading his article, 7 Key Truths About Picking the Right Partner.
2. True price optimization requires total alignment
The organizations who are most successful with pricing transformation have managed to foster complete alignment across business leadership, sales teams, pricing teams, global business units, IT, and individual contributors. Pricing professionals have the opportunity to lead through this change. As a pricer, when you have high organizational visibility and clear goals and direction, you’re more likely to successfully implement your pricing strategy and manage it for maximum profitability in the long run. Pricers have the power to create a profit and revenue engine that can withstand any uncertainty or disruption that comes your way. Don’t underestimate the importance of change management. Leverage your organization’s specialists in this area, or have your software vendor bring their change management resources – don’t leave this critical requirement to chance.
3. Vendavo has helped 150+ manufacturers and distributors optimize pricing
Organizations like ABC Supply and Grundfos have seen incredible results as a result of partnering with Vendavo to optimize pricing. Our customers can centralize and automate accurate and real-time updates for thousands of price points to eliminate complex spreadsheets and error-prone processes. In addition, many of the companies we work with are broadening their pricing strategies to include intelligent sales capabilities, such as white-space analysis, churn prediction, and upsell/cross-sell recommendations driven by machine learning and AI. Overall, the upfront investment yields tremendous returns. In fact, payback on PO&M investments is often less than six months.
For more than two decades, Vendavo has been relentlessly committed to helping B2B enterprises unlock commercial excellence, growth, and profitability. Our solutions offer a wide range of pricing capabilities including competitive monitoring, robust analytics, advanced algorithms that help you forecast market changes, and the fusion of powerful AI and human expertise. Vendavo has complied a newsletter featuring Gartner research that has a number of useful resources on price optimization strategies and best practices.
Gartner, Market Guide for B2B Price Optimization and Management Software, Mark Lewis, 25 January 2022. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.