During the fall edition of our Growth + Profitability Summit, attendees were able to glean insights from some of the world’s leading experts in price optimization and profitability.
That all began in the first few minutes of Day One, when Bruno Slosse, Vendavo’s CEO, took to the stage for his keynote address.
It’s been an extremely successful year for Vendavo, propelled by both the fulfillment of our transformation into offering true SaaS-based products, and by the exigencies facing companies in the wake of the pandemic. Those businesses saw an urgent need for price and sales optimization solutions from a provider with a proven track record and reputation for 100% customer focus.
That success really provides, however, some vital insights about overall trends and future possibilities for businesses that want to sustain growth and profitability during what’s been a volatile period. Especially as it’s a landscape that looks to remain tumultuous for some time to come.
Insight: Transformation Must Deliver Value to Customers
When Bruno joined the organization, it was focused on pricing solutions managed on-premise by our customers, a model that the Vendavo team invested enormous effort in evolving over the last several years. By re-focusing on offering a wide range of solutions that help customers achieve Commercial Excellence, and by configuring those offerings as SaaS-based products, we’ve provided pricing and sales professionals with agile, scalable, flexible solutions that were far easier to adopt and utilize.
Our transformation wasn’t a case of “catching up” to cloud or SaaS-based expectations, but the product of an in-depth understanding about where these technologies had to go in order to be the most relevant. We took (and continue to take) a proactive, innovative approach to providing valuable solutions for our customers.
As Bruno pointed out, everything we do, build, or execute on must eventually be for the benefit of our customers
The best testimonial to the success of this approach? The 97% customer retention rate we’ve enjoyed.
Insight: Today’s Challenges Require a Comprehensive Solutions Framework
The trends and challenges companies in our various markets are facing are too large to solve with standalone solutions that serve as short-term band-aids. To pursue Commercial Excellence, businesses have to implement digitization of the entire commercial process. Adopting a holistic solutions framework will give them a much-needed edge in strategy and execution, and the critical ability to price and sell with the kind of speed and precision that’s essential in a marketplace where, very often, the “first quote wins.”
As you can see in the framework laid out above, a company’s Sales / Commerce capabilities need to include the ability to select and configure the right product at the right price at the right time for every single customer. They ought to be able to create contracts, when needed, and renew that business to grow sales over time. All delivered within seamless omnichannel customer experiences, whether the experience is direct, through a distributor, or via an eCommerce site.
Strategic Pricing supports this by leveraging both internal and external data to optimize list prices and varied pricing structures, by monitoring competitors, making dynamic pricing adjustments, and managing rebates or incentives.
In the mid-layer of this framework? That’s Commercial Intelligence, where robust analytics and AI capabilities inform the entire process, including tools for pricing guidance, sales intelligence, commercial analytics and more. For Vendavo, our unique offerings in all these areas has been major differentiators. Companies that want to lead in the marketplace know they need AI-enabled tools to help them effectively compete for buyers.
Insight: Transformation Drives Measurable Margin Improvements
How can companies effectively drive (and measure) benefits through the transformation outlined above? We’ve worked with customers to determine the exact equation involved, one that’s similar across different-sized enterprises, different industries, and varied markets. So what are the variables to be considered?
- Annual Revenue, meaning the revenue coming into the entire business or a subset of it based on pricing work.
- Scope is contingent on how much of the revenue is addressable; for example, if there are contractual obligations or locked rates, these must be excluded from scope.
- Adoption, the key to benefit increases, is based on how the increased effectiveness of a sales team or organization. Can their workload be streamlined? Are they waiting for other internal stakeholders too much of the time? Do they have the proper tools or easy-to-access updated pricing to streamline their jobs (and your bottom line)?
- Lift is the final factor, which we’ve found can be safely estimated at 1.5%
In Vendavo’s case, we’re happy to be able to report that the customer-validated benefits they’ve seen over the past 12 months have been outstanding:
Insight: Technology Can Deliver Deep + Broad Impact
How broad an impact can price and sales optimization technology have on a company’s prospects for profitability and growth? As it stands, the right technology can have a surprisingly pervasive and positive impact.
Vendavo’s own range of solutions, so instance, will address challenges that impact at least 85% of the potential revenue for a given customer. It’s an eye-opening example of how much room for optimization there is within many organizations. And of how technology can provide significant value and ROI, unlocking growth and value for those enterprises. Moreover, as solutions become even more intelligent and capable, they’ll be able to deliver even greater value.
Insight: It’s Time for Faster Time-to-Value
One of the most common questions we hear from prospective customers? “How fast?” Meaning, how quickly will they begin seeing a return on their technology investment?
In our view, shortening time-to-value is one of the key responsibilities of any technology provider. That doesn’t just apply to initial adoption – it’s incumbent on us to ensure a customer is also benefiting from new and improved functionality as rapidly as we can deliver it.
Over the next five years, we’re committed to improving time-to-value by 75%. For some providers, that might be a tall order. But considering the ingenuity and sweat equity the Vendavo team has put forth so far? And the contributions of the customers we’ve been fortunate enough to partner with? We might hit that goal even sooner than we think.