PROS®
(NYSE: PRO), a big data software company, today announced the results of
a European research survey conducted by the European
Pricing Platform (EPP), a not-for-profit organisation that supports
the development of pricing professionals in the region. Based on
responses from more than 120 business leaders and pricing experts, the
European Pricing Maturity Study 2013 indicates the majority of
organisations want to improve their approach to sales and pricing
management.
According to the research report, more than half (56%) of respondents
overestimate their current pricing maturity level. Rather than being
able to capture potential value opportunities and correctly position
their goods and services for customers, the majority of organisations
(90%) are currently only able to manage standard price lists or single
transactions. To improve and better manage sales effectiveness, 88% of
those surveyed are looking to invest in new technology over the next 12
months.
EPP President Pol Vanaerde commented, “Pricing is a strategic business
enabler that drives sales growth and spans multiple business areas and
functions, including sales, marketing, finance and product management.
It is often not integrated and managed effectively. Companies that bring
together pricing and sales are able to better perform in their markets,
capture more value for their customers and increase their own
profitability.”
PROS EMEA General Manager Eric
Allen said, “These research results provide valuable insight into
the role big data applications and pricing management can play in
improving sales effectiveness. PROS helps companies bring sales and
pricing teams together using data science and analytics that drive the
right decisions and provide organisations with a competitive advantage
for winning deals more profitability. Industries from manufacturing and
automotive, to chemicals, logistics and services, are using data science
to sell more effectively and improve results. We are pleased to have
sponsored this research and appreciate the work of the EPP.”
As part of its research, EPP evaluated maturity levels for pricing
across a range of industries including automotive, chemical, high-tech,
life sciences, machinery and equipment manufacturing, postal and
logistics, and telecommunications, in the business-to-business arena.
Fast Moving Consumer Goods (FMCG) was the only business-to-consumer
sector included in the report.
As part of the Pricing Maturity Model, the EPP assigned rankings to each
respondent based on these criteria:
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Level 1: Price List Maintenance – practices basic pricing techniques.
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Level 2: Transactional Control – can sell products at the right price
levels to customers.
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Level 3: Full Value Capture – practices greater segmentation of
customers and solutions.
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Level 4: Pricing Optimisation – uses solutions and revenue models that
provide the most value for the customer and profitability for the
company.
Findings for these industries included the following:
-
Respondents from the machinery and equipment sector were the most
realistic about their pricing maturity. Companies in the sector are
the most ambitious around improving their approach to pricing and
sales effectiveness. They were also the most keen to implement pricing
software that would integrate with their ERP and CRM systems.
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High-tech companies are the most mature in their approach to pricing,
with 43% of companies operating at Level 3 of the EPP Pricing Maturity
Model.
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In the chemical sector, 60% of respondents indicated that a dedicated
price optimisation strategy was a ‘must-have’ business initiative for
their organisation. A full 80% of those surveyed believe that big data
analytics will lead to higher profit margins.
-
In a surprising result, FMCG companies were the lowest ranked when it
came to pricing maturity. The biggest challenges for these companies
are gaining control over discount practices and making sense of the
huge amount of data gathered during customer transactions, according
to the research.
For information on how to use big data for sales effectiveness, visit
the PROS website at www.pros.com.
For a full copy of this report, visit http://info.pros.com/EPP-EuropeanPricingMaturityStudy_DownloadPage.html
or call +44 (0) 1784 777 010. For more information on EPP, please
contact Nicolene Barnard on nicolene.barnard@pricingplatform.eu.
About EPP
Founded in 2004, the European Pricing Platform has become the leading
knowledge sharing platform for European pricing and profit optimisation
decision makers, revenue managers and CxOs, dedicated to developing and
sharing pricing knowledge, best practices and resources via on-line and
off-line media. The EPP is dedicated to the professional development of
the individuals and companies involved in the process of pricing and
profit optimisation. To learn more, visit the website at http://www.pricingplatform.eu.
About PROS
PROS Holdings, Inc. (NYSE: PRO) is a big data software company that
helps customers outperform in their markets by using big data to sell
more effectively. We apply 27 years of data science experience to unlock
buying patterns and preferences within transaction data to reveal which
opportunities are most likely to close, which offers are most likely to
sell and which prices are most likely to win. PROS offers big data
solutions to optimise sales, pricing, quoting, rebates and revenue
management across more than 30 industries. PROS has completed over 600
implementations of its solutions in more than 50 countries. The PROS
team comprises more than 700 people around the world. To learn more,
visit www.pros.com.
Forward-looking Statements
This press release contains forward-looking statements, including
statements about the functionality and benefits of big data software for
pricing and sales effectiveness to organisations generally as well as
the functionality and benefits of PROS software products. The
forward-looking statements contained in this press release are based
upon PROS historical experience with big data software and its current
expectations of the benefits of big data software for organisations that
implement and utilize such software. Factors that could cause actual
results to differ materially from those described herein include the
addressability of an organisation’s pricing and revenue management
needs, the risks associated with PROS developing and enhancing products
with the functionality necessary to deliver the stated results and the
risks associated with the complex implementation and maintenance of big
data software for pricing and sales effectiveness such as PROS software
products. Additional information relating to the uncertainty affecting
the PROS business is contained in PROS filings with the Securities and
Exchange Commission. These forward-looking statements represent PROS
expectations as of the date of this press release. Subsequent events may
cause these expectations to change, and PROS disclaims any obligations
to update or alter these forward-looking statements in the future,
whether as a result of new information, future events or otherwise.
Copyright Business Wire 2013